Monday 27 May 2019

Council Tax Support

As of April 2013 the administration of council tax benefit changed. Instead of being administered on a national level local authorities have now set up their own local localised benefit support schemes. This has been accompanied by a 10% reduction in funding for Council Tax support. 

The Impact

Impact on Citizens

Impact on Councils

  • Local schemes have reduced support to certain groups to meet budget constraints, including low income working families, those in part time work or zero hours contracts.


  • Some groups may now be paying Council Tax for the first time.


  • The council tax benefit claimant counts in the East Midlands have remained static or increased despite falling unemployment, contrary to the DWP expectations (further detail in Figure 10.1). This may be due to increased number of claimants in part time work or on zero hours contracts.


  • 23 out of 28 councils that responded reported a fall in council tax collection rates and there is evidence that the cost of collection is increasing.


  • Initial rates of council tax collection are declining through the year as more people are finding it harder to pay.


  • The cost of council tax recovery is increasing with councils having work harder to collect receipts.