Nottingham City Council has decided on minor changes to its council tax support scheme, averting drastic reductions in financial assistance. While the maximum support level will remain at 80%, changes to the savings threshold, minimum support amount, and property band calculations will impact hundreds of households.
Nottingham City Council has narrowly avoided making drastic changes to its council tax support scheme, which helps low-income families pay their bills. A consultation launched in December 2024 initially proposed reducing the maximum financial assistance from 80% to as low as 30%, citing the scheme's £30 million annual cost. The Labour-run council, facing significant budget gaps in the coming years, aimed to ensure the scheme's long-term viability.
However, following the consultation, the council has opted to retain the 80% support cap. Despite this, several adjustments will be implemented, impacting hundreds of families. One proposed change involves lowering the savings threshold for eligibility from £16,000 to £6,000. This would affect 199 households. Additionally, the council plans to eliminate support for those eligible for less than £5 a week, a move expected to impact 568 households. Currently, even those deemed eligible for 50p a week receive support. Another change will see the council use the council tax liability of a band B property to calculate support, even for residents in higher bands (C to H), potentially affecting 671 households. The council emphasizes its commitment to protecting vulnerable residents, stating that payments like PIP, Disability Living Allowance, War Pensions, and Carers Allowance will remain disregarded in income assessments. The council tax support amount is determined individually, considering factors like household income, size, and disability or child status. Councillor Neghat Khan, the council's leader, expressed relief that the council is no longer facing the necessity of reducing the scheme due to improved finances. The revised scheme requires approval by March 11th and will take effect in April 2025, with the council aiming to save £260,000 annually.
NOTTINGHAM CITY COUNCIL COUNCIL TAX SUPPORT FINANCES SAVINGS THRESHOLD MINIMUM SUPPORT PROPERTY BANDS
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