Council tax support changes: what you need to know

Many low-income households are in for a shock as council tax support is set to change.

Over the last few weeks, various councils have announced they’re reducing the level of support aimed at helping those in need.

As councils scramble to cover funding gaps, thousands may face paying council tax for the first time.

What's happening?

Councils are making drastic cuts to support for low-income families, with some capping the maximum council tax relief at a lower level, reducing the amount of time you can backdate support for, or only offering support to certain council tax bands.

Other councils are even considering council tax hikes of up to 25% next year.

Proposed changes

Here are some of changes councils are looking at bringing in:

• Dudley: increasing the minimum payment from reduced households to 60%
• Waltham Forest: households could face bills up to 43% of their council tax
• Nottingham: capping support at 80%, maximum support based on band B homes, increase minimum weekly award to £5 from 50p
• Sutton: removing the 100% discount so every household pays “at least 5% council tax”
• Somerset: deductions for non-dependents, restrict support to band D homes, lower the timeframe for backdating relief to just three months (down from 12), tapered support for those who are working age
• Slough: cutting maximum support from 100% to 80% (and increasing the hardship fund)

The impact

For many, paying council tax might have seemed a far-off concern.

But now, with support slashed, families previously making no contribution might be expected to pay significant amounts.

Vulnerable groups, including single parents and those on disability benefits, will feel the pinch the most.

What can you do?

If you think you’ll be affected, it’s best to keep an eye on your local council’s updates – lots of them are also listening to people’s feedback.

Reaching out for support is a good first step – your council’s household support fund could bridge the gap.

It’s also a good idea to check you’re getting all the benefits you’re entitled to so you can make sure you’re receiving as much council tax relief as possible.

You can also get in touch with us for free debt advice to see how else we can help you.