Changes have recently been made to some national benefits. The changes mean that Universal Credit claimants will receive more money from April 2026.
The increased income would ordinarily lead to claimants receiving less help under our Local Council Tax Reduction scheme. Some Universal Credit claimants could then face increases in their Council Tax bills which would offset some of their additional income.
We are therefore proposing to change the Local Council Tax Reduction scheme to keep our support for Universal Credit claimants at its current level. We have also taken the opportunity to include other minor changes, again to align with national benefits.
Before making the changes to our scheme, for the year commencing 1 April 2026, we are undertaking a consultation process to invite the views of stakeholders and interested parties.
Please complete the consultation online.
We are proposing a number of minor changes to its existing scheme and, in line with legislation, we have a duty to consult you and provide you with the opportunity to tell us your views on the proposed changes to our Council Tax Reduction Scheme.
The changes apply to the working age Council Tax Reduction scheme only, as the scheme for pensioners is prescribed by Central Government.
From April 2026, a number of changes are proposed to make the scheme fairer for all applicants and we welcome your comments on the proposed changes.
The Council is consulting on the following changes to its scheme for 2026/27:
- Option 1 - To enhance the scheme to allow for additional dependants (currently limited to two) in line with the changes to Universal Credit;
- Option 2 - To allow the Council to increase the income levels for each discount band by an appropriate amount to account for changes in benefit levels;
- Option 3 - To disregard all elements in Universal Credit which relate to disability or caring;
- Option 4 - To amend the Minimum Income Floor (MIF) for self employed and directors of Ltd companies to allow for variations to be made when the applicant is unable to undertake full time work; and
- Option 5 - To disregard payments made under the LGBT Compensation scheme and the Miscarriage of Justice Compensation Scheme when assessing any support