People in Reading on low wages or benefits could save hundreds of pounds next year, after proposals to provide more council tax support were approved.
Reading Borough Council’s (RBC) policy committee approved increases to the amount of council tax support available to some residents on Thursday (September 23) as part of a series of changes to the scheme for 2022/23.
People who are entitled to claim support will be required to contribute a minimum of 25-30 per cent towards their council tax, down from the current 35 per cent minimum contribution.
Councillor Jason Brock, leader of RBC, said: “This is an issue that matters a great deal to me personally and to all my Labour colleagues as well.
“It has been a source of great frustration to all of us that the consequences of Government reductions to council budgets has prevented us until now from being able to bring forward proposals for an enhanced local government council tax reduction scheme.
“In the current financial year, we have offered universally to all recipients of the council tax reduction scheme a flat-rate grant, which I’m sure is welcome support but clearly, looking forward, we want to see how the scheme can be reformed to best meet its intended purposes and best benefit those who need that support.
“We can all see, looking at the news, with rising gas prices, rising electricity bills, with cuts to universal credit, that some of those who are on the very lowest incomes here in Reading do need support.
“I am pleased that, as a council, having made prudent allocations in our Medium-Term Financial Strategy, we are able to propose this tonight.”
Currently, a couple in a Band D property eligible for council tax reduction support pay a minimum of £727 a year in council tax, 35 per cent of the regular £2,076.83 fee.
With the new changes, the same couple will pay £519-£623, a £105-£208 saving.
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However, if council tax once again increases by 4.99 per cent next year, the couple would have to pay £545-£645.
Other changes to the 2022-23 Council Tax Support Scheme that were approved include:
- Removing the working age council tax support minimum of £5 per month. The council says this will reduce the need for re-applications and ensure customers receive the support they need, no matter how small.
- Increasing the upper limit where people qualify for a council tax reduction from £3,000 to £6,000.
- Allowing one month of backdating. Currently there is no ability for applicants to get backdated pay. Applicants will need to show there is a good cause.
- Setting a standard rate of £10 deduction for non-dependants living with the person getting council tax support. Currently, some people have £15 deductions, while others have £10 and others £0 depending on their non-dependants’ working situation.
Although the plans were approved, a statutory eight-week public consultation period will now follow before responses are considered and the proposals are confirmed.
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