Frequently Asked Questions
- Maintain the current scheme with the same level of support (Model 1)
- Reduce the level of support across all income bands by 5% (Model 2)
- Reduce the level of support for income band 1 by 10% and all remaining bands by 5% (Model 3)
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 discounted through the scheme, dependent upon their circumstances.
What is the current Council Tax Support (CTS) scheme?
Currently, the amount of support a household can receive is based on an ‘income banded discount scheme'.
The scheme operates by offering a discount in the payable Council Tax based on the household income and size.
Households are divided into income bands. Each band gives a % discount off the Council Tax bill. This is the CTS award.
Households with lower incomes are placed in lower bands and receive a higher discount from their Council Tax bill.
How much does the CTS scheme cost the Council?
The current CTS scheme supports 15,367 residents and costs the Council £17.5 million per year.
Why is the Council proposing to make changes to a new CTS scheme?
The Council needs to run a financially sustainable CTS scheme with demand that continues to increase.
Keeping the current scheme the same will result in the cost of the scheme continuing to go up and this is no longer affordable for the Council.
The recommended scheme balances the need to deliver financial savings while continuing to provide sufficient levels of support to applicants.
What scheme is the Council proposing to introduce?
The Council is proposing to retain the current income banded discount scheme with some changes.
The income band thresholds (household income) that determine the level of the discount will be increased but the overall level of the discount will be reduced by 5% for all the discount bands.
Deductions for non-dependent adults in the property will be increased from £7.50 to £10 per week.
This will reduce the overall level of the discount (the CTS award).
No other changes are proposed.
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 2025.
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 2025 you will experience changes to your award.
Changes to the CTS scheme will result in a lower level of support for all working age applicants than would have been received had the scheme remain unchanged.
Are there any alternatives to changing the existing CTS scheme?
The Council has considered several other options for the CTS scheme in 2025/26.
The following options for the CTS scheme in 2025/26 have been considered:
The Council believes the proposed income banded discount CTS scheme (Model 2) will balance the need to continue to support residents at a time of high cost of living maintaining the support provided by the CTS scheme for the lowest income residents while balanced against the financial costs to the Council.