Our new Local Council Tax Support Scheme (LCTS) has recently been approved which will help thousands of households on the lowest incomes in the district struggling to pay their council tax.
The new scheme was approved at a meeting of Full Council yesterday (Monday, 11 December) for 2024/25, helping to make the scheme work better with the Universal Credit system and focusing on:
- Increasing the level of support provided to households on the lowest incomes, including increasing the maximum level of discount available to 77%, meaning over 3,000 households will receive more support
- Replacing the current means-tested scheme with a simplified banding scheme that will make the application process for claimants easier and providing an immediate notification of entitlement
- Administrating the scheme will be easier and more efficient for the council, meaning more time will be available to provide support and assistance to claimants, including administering extra financial support where there is exceptional financial hardship.
These changes follow a recent six-week public consultation that asked residents views on the proposed changes to the scheme, with 88% agreeing with the proposal to introduce an income banded scheme.
Those already receiving Council Tax Support will not be required to re-apply* and will automatically move over to the new scheme in April 2024. Any existing claimants not entitled to the revised scheme will be contacted and considered for assistance through the council’s exceptional hardship fund. For existing claimants who might receive less support, a transitional protection scheme is also being applied*.
An extra £50,000 has been set aside from the council’s £1m Cost of Living Fund to provide additional hardship relief to those affected.
The scheme will not affect pension-age claimants who are protected and continue to receive up to 100% of LCTS support against their Council Tax liability under rules set by the Department for Working Pensions (DWP).
The LCTS scheme forms part of a wider package of council tax support for households, which includes the exceptional hardship fund, discounts and exemptions including disabled relief, support with payment plans, debt and money advice.
Councillor Kevin Bowers, Cabinet Member for Resources and Finance at Braintree District Council, said: “Council tax is extremely important in helping keep vital services running, however we know that there are those that may be struggling to pay their full council tax bill. By simplifying the scheme this means we are best utilising the support to help the thousands of households most in need. It provides an easier and quicker scheme for applicants and reduces the council’s administration costs which in turn will provide better value for money for council taxpayers.
“If you need support and think you may be eligible, please get in touch to find out more about the scheme and what we can do for you.”
More information about the new scheme and how to apply will be available on the council’s website soon at www.braintree.gov.uk/counciltax.
*Existing claimants will not need to re-apply and will be migrated to the new scheme, unless they feel their circumstances have changed that might mean they are entitled to more support.
*A transitional protection scheme for existing claimants will ensure that reductions in entitlement for 2024-25 will be capped at no more than £5 per week, with extra help also available through the Exceptional Hardship Fund.