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Council Tax Reduction Scheme

Background

Council Tax Reduction (CTR) schemes reduce the amount of Council Tax that low income households have to pay to the council.

When the national Council Tax Benefit (CTB) scheme was abolished in April 2013 all councils had the freedom to design their own schemes for working age households, although the rules for pensioners remained the same.

As part of this change the funding received from the government to support these schemes was also cut.

This means the council has had to make some very difficult decisions about the amount of help it can make available to residents on low income. Over the last 2 years it has become necessary to cut the level of support that the council has been able to afford, although Dudley has used its own funds to protect certain household groups from any changes to the scheme.

However, as Dudley continues to face reductions in central government funding, while still needing to deliver core council services, the CTR scheme has been reviewed and will change from April 2016.

Decision on the scheme for 2016/17

From April 2016 no household groups will be protected from scheme changes, meaning all working age households will now pay something towards their council tax bill (subject to any legal exemptions).  This means that all working age Dudley households, eligible to receive CTR, will have to pay at least 20% of the full council tax liability for their property. Pensioner households receiving CTR will still be protected from scheme change under government regulations.

The public consultation regarding changes to this scheme for 2017/18 is now closed.