Barking and Dagenham Council Tax Support (CTS) Scheme 2025/26

What is this consultation about?

The Council Tax Support scheme (CTS) is the way we currently help residents on a low income to pay their Council Tax.

The council replaced its CTS scheme with a new replacement ‘income banded discount scheme’ for 2024/25.

The scheme must be reviewed annually and this year the council is deciding whether to change the working age Council Tax Support (CTS) scheme in Barking & Dagenham for 2025/26.

We will be writing to all Council Tax Support claimants to provide further information of how the proposed new scheme could affect them.


Financial challenges

The Council faces significant financial challenges which will impact on services provided to residents unless they are addressed. There is currently a potential budget gap of in excess of £25m for 2025/26. This is mainly caused by increasing demand and rising costs for social care for vulnerable adults and children. Therefore, the Council is now having to consider further options towards meeting this shortfall and to help protect essential services for residents.

Our original recommendation for the CTS scheme in 2025/26 was made based on our projected forecasted budget gap at that point in time with an expected increase in core funding from the Autumn budget and continued cost savings being found.

However, we will now receive only a marginal increase in core funding from the Government which adds pressure to the Council’s budget. We are also seeing spiralling demand for social care services for both adults and children which is expensive, with costs continuing to rise.

This means that the support we are providing and our previously recommended scheme, is no longer sustainable within our current funding and budget.


Why are we consulting again?

The Council ran a CTS consultation from the 5 August 2024 – 23 September 2024 where we asked for your views on our recommendations to change the CTS scheme for 2025/26.

We are now proposing a new consultation on a new set of proposals for the CTS scheme in 2025/26 because we are having to make more savings than originally anticipated to continue providing essential services.

We’re asking you to take part in this consultation to find out what you think and tell us your views about our proposed CTS Scheme, which would start from 1 April 2025.


What are our new proposals?

The Council is proposing to change the current level of support provided by the CTS scheme for working age applicants.

There would be no changes for Pension Age applicants as they are part of the national scheme.

The Council is now proposing two schemes as part of the consultation with the following changes:





Model one: Maximum available award 60%

  • Retain an income banded discount scheme.
  • Increase the income allowances in each band significantly (this will move some applicants into a higher band)
  • Increase the deduction applied for non-dependent adults who are part of the household from £7.50 to £15 per week.
  • Reduce the overall award in the income bands 1 to 4 by 25%.
  • Removal of bands 5 & 6

This will mean that the maximum discount (Band 1) which is currently 85% will be reduced to 60%.












Model two: Maximum available award 63%

  • Retain an income banded discount scheme.
  • Increase the income allowances to take account of increases in income and Benefits.
  • Increase the deduction applied for non-dependent adults who are part of the household from £7.50 to £15 per week.
  • Reduce the overall award in the income bands 1 to 4 by 22%.
  • Reduce the overall award in the income band 5 by 15%
  • Removal of band 6

This will mean that the maximum discount (Band 1) which is currently 85% will be reduced to 63%.






Have your say on proposed changes

The proposed changes to reduce the levels of support in either Model 1 or Model 2 could save the Council approximately £3m per year.

The consultation is open from Tuesday 3rd December 2024 to Wednesday 15th January 2025.

Thank you for taking the time to share your views.

What is this consultation about?

The Council Tax Support scheme (CTS) is the way we currently help residents on a low income to pay their Council Tax.

The council replaced its CTS scheme with a new replacement ‘income banded discount scheme’ for 2024/25.

The scheme must be reviewed annually and this year the council is deciding whether to change the working age Council Tax Support (CTS) scheme in Barking & Dagenham for 2025/26.

We will be writing to all Council Tax Support claimants to provide further information of how the proposed new scheme could affect them.


Financial challenges

The Council faces significant financial challenges which will impact on services provided to residents unless they are addressed. There is currently a potential budget gap of in excess of £25m for 2025/26. This is mainly caused by increasing demand and rising costs for social care for vulnerable adults and children. Therefore, the Council is now having to consider further options towards meeting this shortfall and to help protect essential services for residents.

Our original recommendation for the CTS scheme in 2025/26 was made based on our projected forecasted budget gap at that point in time with an expected increase in core funding from the Autumn budget and continued cost savings being found.

However, we will now receive only a marginal increase in core funding from the Government which adds pressure to the Council’s budget. We are also seeing spiralling demand for social care services for both adults and children which is expensive, with costs continuing to rise.

This means that the support we are providing and our previously recommended scheme, is no longer sustainable within our current funding and budget.


Why are we consulting again?

The Council ran a CTS consultation from the 5 August 2024 – 23 September 2024 where we asked for your views on our recommendations to change the CTS scheme for 2025/26.

We are now proposing a new consultation on a new set of proposals for the CTS scheme in 2025/26 because we are having to make more savings than originally anticipated to continue providing essential services.

We’re asking you to take part in this consultation to find out what you think and tell us your views about our proposed CTS Scheme, which would start from 1 April 2025.


What are our new proposals?

The Council is proposing to change the current level of support provided by the CTS scheme for working age applicants.

There would be no changes for Pension Age applicants as they are part of the national scheme.

The Council is now proposing two schemes as part of the consultation with the following changes:





Model one: Maximum available award 60%

  • Retain an income banded discount scheme.
  • Increase the income allowances in each band significantly (this will move some applicants into a higher band)
  • Increase the deduction applied for non-dependent adults who are part of the household from £7.50 to £15 per week.
  • Reduce the overall award in the income bands 1 to 4 by 25%.
  • Removal of bands 5 & 6

This will mean that the maximum discount (Band 1) which is currently 85% will be reduced to 60%.












Model two: Maximum available award 63%

  • Retain an income banded discount scheme.
  • Increase the income allowances to take account of increases in income and Benefits.
  • Increase the deduction applied for non-dependent adults who are part of the household from £7.50 to £15 per week.
  • Reduce the overall award in the income bands 1 to 4 by 22%.
  • Reduce the overall award in the income band 5 by 15%
  • Removal of band 6

This will mean that the maximum discount (Band 1) which is currently 85% will be reduced to 63%.






Have your say on proposed changes

The proposed changes to reduce the levels of support in either Model 1 or Model 2 could save the Council approximately £3m per year.

The consultation is open from Tuesday 3rd December 2024 to Wednesday 15th January 2025.

Thank you for taking the time to share your views.

Page last updated: 12 Dec 2024, 12:04 PM