North Somerset Council is once again considering cutting the council tax discounts given to its lowest-income residents, a move that could impact approximately 6,400 working-age households. This follows last year’s abandoned proposal, which was criticized by councillors for being “so discriminatory” it might violate the Equalities Act.
Currently, 11,250 low-income households benefit from council tax discounts. Under the new proposal, the council plans to reduce discounts by ten percentage points for working-age recipients as part of efforts to save £500,000. For example, individuals with no income currently receive a 75.5% discount, potentially dropping to 65.5%. Those earning between £1,000.01 and £1,400 a month could see their discount decrease drastically—from 18% to just 8%.
Pensioners would retain their full government-mandated support, with cuts focused exclusively on working-age households. The council currently spends about £5.8 million annually on this support, which the proposed reductions would lower to approximately £5.3 million. If approved, changes would take effect at the start of the new financial year in April. A public consultation on the proposals remains open until 5 pm on January 6.
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Council leader Mike Bell defends the cuts, citing “the most challenging financial situation in its history.” He emphasizes that every service line is under review, with “really tough decisions” needed. Bell stresses the need to balance affordability and fairness—both for recipients of council tax reductions and for residents relying on other crucial council services.
To support those genuinely unable to pay, the council will introduce a discretionary hardship fund. Applicants will need to provide evidence of financial hardship, demonstrate efforts to claim relevant benefits, and show they have explored all payment options for council tax.
This is not the council’s first attempt at reducing discounts. Last year, a proposal to save £1.5 million by cutting council tax reliefs faced significant pushback and was dropped during the equality impact assessment due to concerns it would disproportionately affect vulnerable residents and increase local inequality.
North Somerset Council warns it may soon need to issue a section 114 notice—a formal declaration of financial distress—and has engaged the government for “exceptional financial support.” This might include approval for an extraordinary council tax increase for all households. Bell highlights escalating demand and costs, noting that children’s and adult social care now account for 62% of the council’s budget. He also shared that government funding is expected to be cut by an additional £17 million following a recent funding review.
Residents have until January 6 at 5 pm to submit their views on the proposals through the ongoing consultation.