Guide Council Tax Reduction

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6. Council Tax Reduction Scheme 2023/24 Consultation

What is Council Tax Reduction?

Council Tax Reduction is a discount for Council Tax. The level of discount is based on the income of the household. Currently the maximum discount for Pension age households is 100% and for working age households 85% of Council Tax.

The scheme for working age applicants limits support to a maximum of a Council Tax Band D and applicants who live is premises who have a higher Council Tax band (E,F, G or H) will have any award calculated based on a Band D level.

The Council can only make changes to the working age scheme as the Council Tax Reduction scheme for pensioners is prescribed by Government.

Why are we having this consultation?

Councils are required to review their schemes each year and decide if they want to make any changes. Before any changes can be implemented, they must be subject to public consultation. For the past two years we have not made changes to our scheme due to the impact of Covid but we are now proposing a number of changes for the financial year 2023/24.

What are the changes? 

  • increase the maximum level of support for working age applicants in income band 1 from 85% to 100% and to make changes to the income levels for some of the income bands. Both of these changes are designed to provide more support to low-income households
  • provide more flexibility in applying the Minimum Income Floor (MIF) for self-employed applicants by allowing a lower rate of 16 hours where they are unable to undertake full time work
  • limit the backdating provision to 12 months
  • disregard certain welfare payments paid to taxpayers under special schemes (Local Welfare Provision)
  • where the Government makes emergency increases to national welfare benefits to assist in a crisis, the scheme will give us the discretion to disregard those increases if they would have a negative effect of Council Tax Reduction.

Why we are considering the changes 

We are proposing these changes to provide more financial support for our residents, especially those who are going to find it more difficult to budget due to the current cost of living crisis. The proposed changes will allow:

  • more financial support, especially to those on lower incomes.
  • more flexibility when dealing with self-employed applicants.
  • us to backdate claims for a reasonable period of time of up to 12 months.
  • certain emergency welfare payments to not have an adverse effect on Council Tax Reduction.

These changes will only apply to our working age scheme as the Council Tax Reduction scheme for pensioners is prescribed by Government.

To complete the survey click on the blue box below.

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Council Tax Reduction Scheme 2023/24 Consultation

If you need help completing the consultation or have any questions please email your contact details to