Stoke-on-Trent City Council: Proposed Changes to the current Council Tax Reduction Scheme 2027/28 - Consultation Exercise
What is this consultation about?
Each year, the Council has to decide whether to change the Council Tax Reduction Scheme (known locally as Council Tax Support) for working-age residents in its area. Following the completion of the managed migration to Universal Credit within the Council’s area, the Council is proposing that changes are made to its current Council Tax Reduction Scheme with the aim of bringing about a fairer and simpler scheme for all and aligning more with neighbouring local authorities.
The proposed banded Council Tax Reduction scheme will be simpler to administer than a fully means-tested scheme. By grouping residents into income bands, small fluctuations in income do not necessarily result in a change to entitlement. This reduces the number of reassessments, revised bills and enquiries, helping to lower administrative costs. The resulting efficiencies allow resources to be focused on supporting residents and delivering other essential council services whilst maintaining a fair and transparent scheme.
Council Tax Reduction is funded from the Council's overall resources and must be considered alongside the increasing demand for services and the need to maintain affordability for all residents. The proposals being put forward help target support towards those most in need while providing a simple, consistent and transparent approach. This supports a fair balance between assisting low-income households and ensuring the scheme remains financially sustainable for the wider community.
The Council has not yet reached a final decision and would like to hear residents' views on the proposals set out below before considering any changes to the current scheme.
Please note - a separate Central Government scheme is retained for people of pension-age, and Councils are only able to change their schemes for people of working-age.
What is Council Tax Reduction?
Council Tax Reduction is a discount to Council Tax, the level of which is based on the income of the household. Currently, working-age households who meet the relevant criteria and are not in a protected category can receive up to 70% of their Council Tax liability paid via Council Tax Reduction.
Applicants within a protected category such as those in receipt of certain disability-related benefits, may receive reduction of up to 100%.
Pensioners can also receive up to 100% reduction, depending on their income (Pensioners are not affected by the proposed changes).
Background to the Council Tax Reduction Scheme
In April 2013, the Council Tax Benefit scheme was replaced by the new Council Tax Reduction Scheme. Since that time the Council has been operating its own Council Tax Reduction Scheme and it reviews its scheme each year to decide whether to make any changes to it. Before any changes can be made, the Council must undertake a consultation exercise on the proposed changes.
People can claim Council Tax Reduction if they are on certain benefits or have a low income.
A separate Central Government scheme is retained for people of pension-age, and Councils are only able to change their schemes for people of working-age.
What Changes Are Being Proposed?
The Council is proposing a number of changes to its existing scheme and, in line with current legislation, we have a duty to consult and provide you with the opportunity to tell us your views on the proposed changes to our Council Tax Reduction Scheme.
The proposed changes are:
- Implementing a banded scheme whereby a household is placed in a band based on their household income and this band determines the amount of Council Tax Reduction.
- No longer having any protected groups (aside from pension age households)
- Disregarding certain incomes from the assessment
- Awarding a £50 per week disregard per household if you/your partner would be entitled to the Disability Premium, Severe Disability Premium, or Enhanced Disability Premium (these are explained below)
- Limiting the number of children that can be considered when assessing entitlement to a maximum of 2 children – a child being someone who you receive Child Benefit for
- Supporting residents who have a terminal illness (this will also apply to pensioners)
Household income for the assessment is considered as the income of the claimant and any partner. If there are any other adults living in the household their income will not be included, however there may be a reduction in the amount of Council Tax Reduction awarded based on their income; this would be either £0 or £10 per week (this is the same as the current Council Tax Reduction scheme).
Certain incomes of the claimant/partner would not be included in the household calculation.
These are:
- Housing Costs element of Universal Credit
- Disabled Child element of Universal Credit
- Carer element of Universal Credit
- Personal Independence Payment
- Disability Living Allowance
- Attendance Allowance
- War Pensioners mobility supplement
- Child Benefit
- Child Maintenance
All other income would be included in the assessment.
Additional disability £50 disregard criteria and conditions:
1.Disabilty premium – applies to you and/or your partner if you are receiving:
- any rate of Disability Living Allowance
- any rate of Personal Independence Payment
- Attendance Allowance
- War Pensioners mobility supplement
- Armed Forces Independence Payment
You must not be in receipt of Employment and Support Allowance
2. Severe Disability Premium - applies to you if you are receiving:
- Personal Independence Payment daily living component at the standard or enhanced rate
- Disability Living Allowance care component at the middle or highest rate
- Attendance Allowance
- Armed Forces Independence Payment
You are not entitled to the Severe Disability Premium if there someone else over 18 living in the property with you unless they are in receipt of Personal Independence Payment daily living component (either rate), Disability Living Allowance care component at the middle or higher rate or Attendance Allowance, or if someone is receiving Carers Allowance or the Carer element of Universal Credit for looking after you.
3. Enhanced Disability Premium applies to you and/or your partner if you are receiving:
- Personal Independence Payment daily living component at the enhanced rate
- Disability Living Allowance care component at the highest rate
- Armed Forces Independence Payment
- Support component of Employment and Support Allowance
If you meet any of the above disability premium criteria this means that you will have £50 per week (£216.67 per month) disregarded from your income.
Proposed bands
Below is a table showing the weekly income bands we are proposing and the percentage of Council Tax Reduction you could receive if your weekly assessable income is in that band (scroll sideways using the slider bar the bottom of the chart to see all options).
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SINGLE
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SINGLE + 1 child
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SINGLE +2 or more children
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COUPLE
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FAMILY+ 1 child
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FAMILY +2 or more children
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|
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Income from
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Income to
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Income from
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Income to
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Income from
|
Income to
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Income from
|
Income to
|
Income from
|
Income to
|
Income from
|
Income to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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100%
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£0.00
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£90.00
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£0.00
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£160.00
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£0.00
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£230.00
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£0.00
|
£135.00
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£0.00
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£205.00
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£0.00
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£279.00
|
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85%
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£90.01
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£107.00
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£160.01
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£190.00
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£230.01
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£275.00
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£135.01
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£161.00
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£205.01
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£245.00
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£279.01
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£329.00
|
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75%
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£107.01
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£157.00
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£191.01
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£241.00
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£275.01
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£325.00
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£161.01
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£211.00
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£245.01
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£295.00
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£329.01
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£379.00
|
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50%
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£157.01
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£207.00
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£241.01
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£291.00
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£325.01
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£375.00
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£211.01
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£261.00
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£295.01
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£345.00
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£379.01
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£429.00
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25%
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£207.01
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£257.00
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£291.01
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£341.00
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£375.01
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£425.00
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£261.01
|
£311.00
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£345.01
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£395.00
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£429.01
|
£479.00
|
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0%
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£257.01
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and above
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£341.00
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and above
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£425.01
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and above
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£311.01
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and above
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£395.01
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and above
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£479.01
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and above
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An example of how these proposals would work:
Example 1:
- Single person with assessable income of £172.00 per week.
- Council tax liability £20.94 per week
- Based on income, the household fits into the 50% band
- Amount of Council Tax Reduction to be paid £10.47 per week
Example 2
- Family with 2 children with assessable income of £305.00 per week
- Council Tax liability £32.56
- Based on income, the household fits into the 85% band
- Amount of Council Tax Reduction to be paid £27.68 per week
Who will this affect?
Some working-age households in the area who currently receive, or can apply for, Council Tax Reduction may be affected.
Pension-age households will not be affected as Central Government prescribes the scheme relating to those households.
These proposed changes to the scheme aim to rebalance the distribution of the funding across working-age claimants of Council Tax Reduction. If the proposals are implemented, some households may receive more Council Tax Reduction than they do currently; some households may receive less Council Tax Reduction than they do currently; and some households may see no change to their entitlement.
Are there any alternatives to changing the existing Council Tax Reduction Scheme?
We have also thought about other ways to make administration simpler. These have not been completely rejected (including maintaining the current scheme).
Any questions?
If you have any questions regarding the consultation information, please email CTRconsultation@stoke.gov.uk or call us on 01782 237450 between 10am and 4pm Monday to Friday.
You can also write to us at:
Benefit Services Consultation
PO BOX 186
Civic Centre
Glebe Street
Stoke-on-Trent
ST1 4HH
When would any changes take effect?
Once the consultation process has ended all responses will be considered and a decision made as to the changes that will be made.
All changes would take effect from 1 April 2027.