Local people will soon be asked for their views on proposed changes to Calderdale’s Council Tax Reduction Scheme from 2025/26.
Significant financial challenges are ongoing across local government, and Calderdale Council needs to make the savings approved by its Budget Council in February 2024 to make sure it can balance the books.
One of the required savings is to reduce spend on the Council Tax Reduction Scheme by £1 million from 1 April 2025.
The scheme supports people on low incomes to pay their Council Tax, by offering a discounted rate. The scheme has not changed since 2014/15, and now needs bringing up to date.
The Council is proposing to reduce the maximum discount provided by the scheme, meaning some people would need to pay more towards their Council Tax from April 2025. The Council is also considering boosting support for financially vulnerable people struggling to pay their Council Tax.
At the moment, the lowest amount a person can contribute to their Council Tax is 19% of their total bill (an 81% discount). The proposed changes to the reduction scheme would increase the minimum required payment to 30%, 35% or 40% (a discount between 70% and 60%) for working age households. Discounts higher than 70% would not achieve the £1 million budget saving. A discount of 65% or less would provide funds to increase early support for the most vulnerable residents.
Pension-age households eligible for the Council Tax Reduction Scheme would not be affected, with pensioners on the lowest income continuing to receive discounts of up to 100% as before.
At the Council’s Cabinet meeting on Monday 5 August 2024, Councillors will be asked to approve:
- The launch of a public consultation for at least four weeks from late-August 2024. This would seek feedback from working-age Council Tax payers who are likely to be affected by the proposed changes to the Council Tax Reduction Scheme. Feedback would be reported back to Cabinet in November 2024.
- The principle of increasing early help and advice for people facing the most financial hardship, meaning they would be less likely to struggle paying their Council Tax.
- Work to look into introducing a Council Tax exemption scheme for care leavers. This would be discussed in detail at a separate Cabinet meeting in the future, and the idea is that young people leaving the Council’s care would not have to pay Council Tax. This would help prepare them for adulthood and independent living, supporting the Council’s ‘corporate parenting’ commitment to seek the same outcomes for young people in care that every good parent would want for their own children. The Council recently introduced a Council Tax exemption for its foster carers to recognise their kindness and boost recruitment.
- Further checks to ensure that people claiming the single person discount (which reduces a single householder’s Council Tax bill by 25%) are still eligible. If people are found to be claiming a discount they’re not eligible for, this would increase their Council Tax payments and the money available to spend on vital Council services and support.
Cllr Silvia Dacre, Calderdale Council’s Cabinet Member for Resources, said:
“As part of our priority to reduce inequalities, we continue to do everything we can to protect people from the rising costs of energy, food and other essentials. There is lots of help available from the Council and other organisations in Calderdale.
“The Council Tax Reduction Scheme is one example of this support. As the Council’s own funds are under extreme pressure, we must make budget savings. This is why we are consulting on changes to the scheme, whilst at the same time looking to improve our early help to residents at risk of falling into debt. As part of our commitment to our children looked after, we also intend to explore a Council Tax exemption for care leavers.”
The Council’s web page for consultations and feedback can be found at https://new.calderdale.gov.uk/council/consultation-and-feedback
For information on Council Tax discounts and exemptions, please visit https://new.calderdale.gov.uk/council-tax/discounts-and-exemptions
For support with money, go to https://new.calderdale.gov.uk/benefits/money
Calderdale Council’s Cabinet meeting will be held on Monday 5 August 2024 at Halifax Town Hall from 4pm. The meeting can also be viewed online at https://calderdale.public-i.tv/core/portal/home(external link)
Building resilience in the borough’s communities supports the Vision 2024 for Calderdale. Calderdale reached its 50th anniversary on 1 April 2024. This is the ultimate year for the Vision 2024 for Calderdale. Find out more about it here: www.calderdale.gov.uk/vision