Updates to Local Council Tax reduction scheme approved

Dorset councillors have voted to implement an updated Council Tax Reduction scheme from 1 April 2024. The scheme is open to working-age people and offers support for low-income households with paying council tax. It was introduced in 2013 and replaces the former council tax benefit scheme.

The new scheme aims to make it easier for residents to understand and access, work better with the Universal Credit system and take away the need for constant changes to awards, making it easier to manage.

It will follow a more unified, simple income grid, taking into account a residents’ income and how many dependents they have, replacing the current means tested system. The scheme exclude some benefits from the calculation of income, protecting applicants who need support whilst receiving other benefits.

It also includes increasing the current maximum amount that could be claimed from 90 per cent, up to 100 per cent for those who are eligible.

The reductions will be restricted to a council tax band E level, meaning that any applicants who live in a band F, G or H property will have their entitlement calculated at a band E level.

Cllr Gary Suttle, Dorset Council Portfolio Holder for Finance, Commercial and Capital Strategy said:

“The Local Council Tax Reduction Scheme helps to support residents most in need with their council tax bill, and these changes help us to target the support in a clear and easy to understand way.

“The existing scheme is largely based on the previous Council Tax Benefit system that was in place before the introduction of Council Tax Reduction in 2013 so it’s time to replace this with a new scheme which works in line with other existing benefit systems such as Universal Credit.

“The new scheme will allow us to give those most in need of support a reduction of up to 100 per cent of their council tax bill, an increase from 90 per cent under current arrangements.

The changes will come into effect from 1 April 2024.