Continuation of Council Tax  reduction for those on low incomes recommended

11 Dec 2024

Families in West Suffolk on low incomes, including those in work, suffering from economic hardship could benefit for another year from a 100 per cent discount in Council Tax.

West Suffolk Cabinet recommended continuing the discount for a third year following a consultation with the public and stakeholders which together supported extending the current Council Tax Reduction Scheme.

The move is part of a range of ways the council is supporting families and communities including those with the highest risk of financial hardship as a result of the current challenging economic times.

Over the last two years there has been public and stakeholder support for West Suffolk Council temporarily changing the Local Council Tax Reduction Scheme for one year.

This included increasing the discount from the previously capped 91.5 per cent (where those eligible pay a minimum of 8.5 per cent of their Council Tax) to a maximum discount of 100 per cent (where those eligible would pay none of their bill).

As part of this year’s engagement the council asked residents to have their say on whether to do this for another year. Views were also sought from those who set Council Tax such as parish, town and the county councils and the majority of those who responded confirmed their support. 

The average working age recipient of the Local Council Tax Reduction Scheme (LCTRS) would receive up to an additional £103 discount on their Council Tax for the single year.

The proposal is highly targeted to reach those who are already on means-tested benefits, many of whom are working, and has low administrative cost. This could benefit around 4,700 residents and represents a one year only £500,000 investment by organisations that set Council Tax precepts in supporting those most in need that meet the criteria.

The cost to the council would be worked through the 2025 to 2026 budget setting process.

By providing additional support to residents the aim is to help avoid crisis situations, for example, homelessness and fewer applications for Exceptional Hardship Payments from those in receipt of Council Tax support.

This is a short-term measure and if agreed the West Suffolk Council’s LCTRS would continue with the maximum reduction on council tax paid of 100 per cent from April 2025.

Cllr Diane Hind, Cabinet Member for Resources for West Suffolk Council, said: “The tough financial times is hitting many people. Which is why we are looking at extending this reduction in Council Tax for a third year to help people on low incomes, including those working, to help keep their heads above water in these difficult financial times. Last year more than 4,000 people were helped by this scheme. We would like to thank those who had their say, including partners. The recommendation will now go forward to be discussed by Council. It is part of a range of ways the council is supporting communities including those with the highest risk of financial hardship as a result of the current economic challenges.”

Further background on the proposed changes is available in this report: West Suffolk Local Council Tax Reduction Scheme (LCTRS) 2025 to

Cabinet agreed the recommendations at their meeting on Tuesday 10 December. It will now be heard at Council on 17 December. The changes would come into effect for one year from April 2025.

---