Nottingham City Council avoids major cuts to its council tax support scheme, despite aiming to save £260,000. While maintaining the 80% maximum support for eligible households, the council will implement smaller changes affecting hundreds of families, including adjustments to the savings threshold and minimum support amount.
Nottingham City Council has avoided the most drastic changes to its council tax support scheme , which aids low-income working-age households, despite aiming to save £260,000. The council launched a consultation in December 2024, exploring potential reductions to the maximum financial assistance offered, which currently covers up to 80% of council tax bills.
Initially, the council proposed slashing the maximum support to as low as 30%, citing the scheme's substantial annual cost of around £30 million and ongoing budget pressures. However, following the consultation process, the council has decided to maintain the current 80% support level.Despite this decision, the council will implement several smaller modifications to the scheme, impacting hundreds of families. One proposed change involves lowering the savings threshold for eligibility from £16,000 to £6,000, potentially affecting 199 households. Another alteration focuses on the minimum support amount, currently set at 50p per week, which will be raised to £5. Families receiving less than £5 weekly support will no longer be eligible, impacting 568 households. Furthermore, the council will recalculate support based on a band B property liability, even for households residing in band C to H properties, potentially affecting 671 households.Councillor Neghat Khan, leader of Nottingham City Council, stated: 'All councils are required to have a support scheme in place to help people on low incomes with council tax. We recently carried out a public consultation as part of a review of Nottingham's scheme, which has been in place since 2013. 'Following the consultation, a recommendation is being made to the council's executive board that the scheme continues to provide a maximum amount of 80% support for working-age claimants. This will ensure that eligible low-income households continue to get the level of support they need. 'Minor changes are being proposed which will provide savings and make administering the scheme more efficient. Last year, we were in a position that would have required us to reduce the scheme, as other councils are currently considering. 'However, we are no longer in that position due to our improved financial situation as a result of a combination of factors including the improvements we have been making to get our house in order by putting the council on a sustainable financial footing, becoming a renewed council, delivering for local people and leading Nottingham forward.' The revised scheme requires approval by March 11th and will be implemented in the financial year commencing April 2025. The council aims to achieve savings of £260,000 through these changes
NOTTINGHAM CITY COUNCIL COUNCIL TAX SUPPORT SCHEME SAVINGS THRESHOLD MINIMUM SUPPORT AMOUNT BUDGET SAVINGS
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