Changes to council tax reductions for low income households proposed due to unitary merger

A consultation on changes to Local Council Tax Reduction Schemes (LCTRS) is running until December 13. The schemes provide a reduction for working-age people and households on low incomes, to help them pay their council tax bill.

Currently, there are individual schemes in place for Northampton, Daventry and South Northamptonshire, which are administered by the councils in each area. But they need to be merged into one for the new West Northamptonshire Council that will replace them next April.

The minimum council tax contribution that working-age people must pay ranges from 8.5 per cent to 31 per cent across the three councils. What appears to be a preferred proposal is for the minimum contribution to be set at 26.5 per cent, meaning a maximum discount of 73.5 per cent would be offered through the new scheme.

This proposal will see greater support given to working-age claimants in Northampton Borough, but less support given to working-age claimants in South Northants and Daventry compared to current levels.

The proposal would also make the scheme ‘broadly cost-neutral’ to the new authority and place no additional cost on the wider taxpayer. There are another five proposals outlined in the consultation document, focusing on war pension income, family premiums, child allowance, self-employed income and non-dependant deductions.

Councillor Rebecca Breese, portfolio holder for finance, revenues and benefits for West Northamptonshire Shadow Authority, said: “We want the new council tax reduction scheme to support as many people as possible who need help paying their council tax, but we must ensure that the scheme is affordable.

“From April 2021, the new West Northamptonshire Council must offer a fair and consistent scheme to all our residents, regardless of where they live.

“We have reviewed the three current schemes which are in place across the existing councils and have proposed a new scheme that harmonises what is already in place.

“We are keen to ensure that all council taxpayers are aware of the changes being proposed and anyone who is likely to be affected by the proposed changes is encouraged to take part in this consultation. Responses will be analysed before a final scheme is presented to Shadow Executive in the New Year.”

Those of pensionable age are protected by the prescribed regulations set out by central Government, so, therefore, will not be affected by the changes proposed to the LCTRS in West Northamptonshire.

Full details about the scheme, along with the online consultation questionnaire, are available at https://futurenorthants.citizenspace.com/lctrs-west/2021-22