Potential cuts to council tax support would hit poorest hardest
It's something being considered in Central Bedfordshire
Potential cuts to council tax support for working-age claimants in Central Bedfordshire are “beyond damaging for the poorest people”, a meeting heard.
Under the current scheme, 9,371 households receive support and 7,141 of these receive 100 per cent support, according to a report to Central Bedfordshire Council’s executive. This has increased from 5,340 claimants in 2022/23, said the report.
“The cost of providing this support is £14m and that’s rising as demand increases. Support would be reduced incrementally, depending on household income.
“Those with the lowest incomes would continue to receive the most help, while those on higher amounts would be asked to contribute more. Pensioners won’t be affected.”
Independent Aspley and Woburn councillor John Baker explained: “We’re required to have a local council tax support scheme to provide discounts to people unable to afford a full payment of this.
“We consult on the scheme every year, typically with no changes. But this year the government is proposing to alter how councils are funded.
“Our current scheme for working age claimants is essentially a maximum award of 100 per cent discount, so no council tax payable in some cases. This proposes a consultation and councillors can attend a scrutiny committee to discuss it.”
Liberal Democrat Leighton Linslade South councillor Shaun Roberts said: “I’m sure nobody here feels this is a happy place to be for the council to begin a consultation around support for some of the poorest people in our area.
“This is a deeply unpalatable option. It’s clear with the current financial situation, the council doesn’t really have a choice.
“We should be using every day between now and that budget to fight for more resources for this local authority and use our MPs to do likewise to obtain a better deal, so it doesn’t come down to a decision such as this.
“It would be beyond damaging for the poorest people in our area to lose this support”
Labour Dunstable North councillor Matt Brennan referred to “a massive increase” in claimants getting full support, saying: “In this climate, you’re going to reduce that help for those people.
“You’ll make it so that people with zero income have to pay you council tax.”
Council leader and Independent Potton councillor Adam Zerny suggested: “It’s the scale of it, as I don’t think anyone would have expected the government to be reducing the (annual financial) settlement to the council by £24m.
“Nobody wants to be looking at this, but all the options have to be considered at this stage. It’s prudent and sensible to be exploring it, although this doesn’t mean the final decision made will be this one.
“There are key services of the council which need to be kept running. MPs can influence this.”
Executive member for finance councillor Baker added: “Unless we can come up with some other way of reducing the council’s expenditure, essentially this is council tax we’re not receiving and we need to consult on it.
“We’ll listen to the outcome and council members will decide.” The committee approved holding a consultation exercise on the possible changes to CBC’s local council tax support scheme for 2026/27.