Following a public consultation, city councillors have approved a transition to a banded council tax support scheme.
Starting in April next year, this new approach will automatically grant increased financial assistance to approximately 7,500 eligible working-age individuals in Portsmouth, eliminating the need for a separate application process.
The council tax contribution from those on the lowest incomes will reduce from 20% to 10%, helping to support those most in need with the cost of living. The discount would reduce for those with higher incomes.
It’s estimated that just over 85% of working-age claimants will either benefit or see no change under the new scheme.
No change is being made to the council tax support scheme for pensioners, who receive up to 100% off their bills.
Leader Cllr Steve Pitt said:
“This change will benefit most of the people who claim council tax support and crucially, give more help to those on the lowest income. The application process will be simplified, which should increase take-up, and the amount of reassessments needed will also reduce, giving people greater financial stability.
“By halving the amount that some people will have to pay, we hope to reduce the levels of council tax debt some people are in.”
Cllr Pitt told the Full Council meeting on Tuesday 17 December that the new scheme would be reviewed after a year.
The amount of support people receive depends on their income and personal circumstances.
Portsmouth’s current Local Council Tax Support (LCTS) scheme, adopted in 2013, is based on an outdated means-tested ‘benefit’ scheme. Due to central government funding cuts, everyone receiving support from the working age council tax support scheme is currently required to pay at least 20% of their council tax bill, including those on the lowest incomes.
Responses to the public consultation found that two thirds were supportive of the change to a banded scheme. In response to the feedback received, some changes will be made to the new scheme, including greater consistency in the bandings for all households, and amends to the childcare cost calculation so it further supports working families.
Each year councils are required to review their council tax support schemes, and around 100 local authorities, nearly a third, operate banded schemes like the one Portsmouth will adopt.
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