What is Council Tax Support (CTS)?

    The CTS scheme helps residents on low incomes to pay their Council Tax. The level of discount is based on the income and size of the household. 

    Under the current scheme a working-age household liable for Council Tax could get up to 85% of the bill paid through the scheme, dependent upon their circumstances. 

    The current CTS scheme

    Currently, the amount of support a household can receive is largely based on the previous Council Tax Benefit (CTB) regulations. This is a complex means-tested calculation with certain types of income compared to a means test (the means test is calculated based on household circumstances). 

    The exact income of your household is used to start calculating how much support you are entitled to.

    How much does the CTS scheme cost the Council?

    The current CTS scheme supports 15,216 residents and costs the Council £16.1 million per year. 

    This is projected to rise to £17.2 million in 2024/25. 

    Why are we proposing to make changes to a new CTS scheme?

    There are a number of issues with the current CTS scheme that will need addressing to ensure that the Council has a CTS scheme that continues to:

    • Provides the greatest support to low-income households. 
    • Reduce the administrative burden allowing for the efficient administration of the scheme. 
    • Provides a simplified approach for residents. 

    The proposed replacement scheme will simplify the approach and work better with the Universal Credit system.  

    What CTS scheme is the Council proposing to introduce?

    The Council is proposing to move to an income banded discount CTS scheme. 

    Calculating how much CTS a resident receives is simplified with the introduction of an income banded discount scheme.  

    The scheme operates by offering a reduction in the payable Council Tax based on the income level of the applicant and its household size. 

    There is no complex means testing calculation applied. 

    Residents can use their total household income and household size to easily calculate the level of discount that will be awarded against their Council Tax bill based on the Council Tax band. 

    Who will this affect?

    The changes to the CTS Scheme will affect working age (aged 16 to 65) households in Barking & Dagenham who will get CTS from 01 April 2024. 

    Pension age (aged 66 or over) households will not see any change as the scheme to support this group is set out by Central Government.

    How do the proposed changes affect me?

    If you are of working age and currently receiving CTS or make an application for CTS after the 01 April 2024 you will experience some changes to your award. 

    Changes to the CTS scheme may result in changes to the level of some CTS awards, with some residents receiving higher awards, some residents receiving lower awards and some residents receiving the same award. 

    Are there any alternatives to changing the existing CTS scheme?

    The Council has considered several other options for the CTS scheme in 2024/25. 

    The following options for the CTS scheme in 2024/25 have been considered: 

    • Keep the current CTS scheme unchanged  
    • Make minor changes to the current CTS scheme 
    • Implement a replacement income banded discount scheme 
    • Implement a different type of discount scheme. 
    • Reduce the overall cost and level of support from the scheme 

    Retaining the current scheme or implementing a different type of discount scheme will not meet the Council’s objectives for the scheme change and is therefore not being proposed. 

    The Council is also not considering reducing the overall cost of the CTS scheme and its support protecting residents during the cost-of-living crisis.