Somerset Council is considering changes to its council tax reduction scheme in an effort to save over £6m, with the potential for cuts to support for residents effective from April 2025. Currently, the council provides discounts to single individuals, couples, and families through its council tax reduction scheme, with nearly £16m of the total £29m expenditure allocated to discounts for working-age individuals.
To gather public feedback, the council has initiated a consultation on the proposed alterations to the scheme, which could result in annual savings of more than £6m through a reduction in the available discount amount. The council’s executive committee met in Taunton on July 15 to deliberate on the proposals before officially launching the consultation. As of now, approximately 32,241 council tax payers benefit from some form of council tax reduction.
The proposed changes aim to align the relief scheme with the council’s financial constraints and seek to ensure a fair and sustainable distribution of available funds. The consultation includes four separate proposals, targeting cost reductions of £6.4m annually. While certain eligibility criteria for council tax relief will remain unchanged, discussions also considered the potential removal of earning disregards and the inclusion of currently disregarded incomes to generate additional savings. However, these latter proposals were excluded from further consideration due to concerns over their potential impact on vulnerable groups, particularly those with disabilities.
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Councillor Theo Butt Philip, portfolio holder for transformation and human resources, expressed his concerns during the executive meeting, emphasizing the need to safeguard the support for disabled individuals and carers. He underscored the importance of maintaining a fair and considerate approach, acknowledging the significance of financial support for those facing hardship.
The consultation, which will run online until early October, seeks to gather public opinions on the proposed changes before final decisions are made. The council aims to implement any agreed modifications to the council tax reduction scheme by April 1, 2025, aligning with the annual budget setting.
Council leader Bill Revans emphasized the council’s commitment to carefully considering the potential impacts of the proposed changes, urging the public to engage with the consultation process. Acknowledging the challenges posed by the current national model of funding local government, Revans reiterated the importance of evaluating all available options to manage spending while highlighting the value of the council tax reductions for individuals with low incomes.
To participate in the consultation, individuals can visit www.somersetcouncil.citizenspace.com/comms/ctr and provide their feedback on the proposed alterations. Additionally, paper copies of the consultation will be available in Somerset libraries, and letters outlining the potential changes will be sent to current recipients of council tax support.