Liverpool City Council to simplify Council Tax Support Scheme

Liverpool City Council is set to simplify its Council Tax Support Scheme, making it easier for working-age residents on low incomes to manage their Council Tax bills.

Council Tax Support provides discounts to help households reduce their Council Tax burden.

With around a third of Liverpool households currently receiving this benefit, the Council is proposing the first major review of the scheme since its introduction in 2013.

Following a consultation, one of four options is being recommended to be taken forward.

The changes being proposed would see the introduction of a banded scheme, designed to ensure the scheme supports those on the lowest incomes, which enables residents to budget, is easy to understand, provides incentives for people moving into work.

The aim is also to future proof it in terms of its cost, as it costs the Council £73 million a year, and affects the amount of Council Tax that can be raised.

Households would get a 12-month award so they know how much their Council Tax bill will be reduced by over a year, enabling them to budget. The proposed changes will also align with Universal Credit and provide some certainty for people moving into or out of work, whilst continuing to provide support to those that need it most.

The upper and lower limits in net earning bands would be extended by £50 per week, while for households with children they will be extended by £25 per child, per week.

The maximum percentage of Council Tax discounted would change from 91.5 per cent to 84 per cent, and awards capped at the level of a Band B property. There would also be a maximum period that an award can be backdated.

The new-look scheme, if approved, is designed to be financially sustainable, and could reduce expenditure on the scheme by around £5.2 million, but would still be one of the most generous among the big ‘core’ cities.

The proposal would not affect the Council Tax Support Scheme for pensioner households, the rules for which are controlled by central Government.

The recommendation will initially be considered by the Cabinet on 10 December, and then has to go before Full Council on 22 January for approval.

Deputy Council Leader and Cabinet Member for Finance and Resources, Cllr Ruth Bennett, said: 

“We are hugely proud of the range of support we offer to the most vulnerable residents in Liverpool and take our responsibility extremely seriously.

“However, we need to make sure that the Council Tax Support Scheme is affordable and sustainable in the long-term.

“The changes make the scheme simpler to understand, and also provide households with a level of certainty by enabling them to know how much they will receive over a 12-month period, which will also reduce our administration costs. 

“Our Council Tax Support Scheme will remain one of the most generous among the big cities and within the Liverpool City Region.”]

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