We’re consulting with local residents about a number of proposed changes to our current local Council Tax Support (CTS) scheme for working-age residents in Barnsley.
The reasons for proposing these changes, details of the proposed changes and how they might affect you, are set out below. Please note that the CTS scheme for pensionable age claimants will remain unchanged as this is decided by the government under a national scheme.
Your thoughts and feedback are crucial to us and will be carefully considered during the decision making process.
Please share your views by filling in the survey which will run for four weeks, from 21 October to 12am on 17 November 2024.
What is the current Council Tax Support scheme?
The current scheme, which has been in place since April 2022, adopts the following principles:
- We use income and capital (savings, investments and property) to calculate whether a household is eligible for Council Tax Support, and how much they'd be entitled to.
- We provide support through an income banded scheme.
- We don't include certain income types, such as Child Benefit and Disability Allowance.
This means we continue to support the most vulnerable households, whilst we encourage employment.
Why are we proposing to make changes to our CTS scheme?
In April 2013, the government got rid of the Council Tax benefit for working-age people and asked councils to replace it with a localised Council Tax Support scheme. Local schemes need to meet the government's plan to encourage people into work, complement the Universal Credit (UC) system and reflect local circumstances and needs.
To make sure local schemes continue to meet needs and support changes in local circumstances, local authorities must frequently review their local scheme. As our current scheme has been in place now since 2022, it’s time to review the scheme and make sure it continues to fulfil its requirements. It has to meet the needs of our most vulnerable households and be sustained in future years.
Following the review, we're proposing to make a number of changes to the current scheme.
Despite the proposed changes, we'll continue to:
- Provide the right level of support to those who need it, targeting the most vulnerable households who need it the most.
- Ensure a fair and consistent approach, which considers local circumstances whilst also fulfilling the needs set out by the government.
- Adopt best practice approaches by comparing ourselves to other local authorities with similar circumstances and local needs.
- Deliver a support scheme that continues to be sustainable into the future against a backdrop of financial challenges.
What are the proposed changes to the scheme?
Several changes are proposed which would be introduced from April 2025:
- Raising the current earnings disregard from £25 to £30 per week. Earning disregard is the amount of earned income we deduct from your income before calculating the support you may receive. This means you can earn and keep more of your earned income before we calculate which income band you fall in and how much help you'll get. This proposal will support our Pathways to Work Commission and encourage people to start working. This is because they'll know they can earn more without it impacting the help they'll get.
- Introduction of a protected band - band 1a (protected group). This proposal would support those who face barriers entering employment, such as those with disabilities.
- A reduction in the percentage Council Tax discount awarded to each income band. This means that each income band will receive a reduction in the support they receive towards their Council Tax. This will make sure that the most vulnerable households who face barriers to work are given the help they need. The proposed reductions for each band can be seen below:
| Band | Current scheme | Proposed scheme |
| Band 1a (protected group) | N/A | 90% |
| Band 1b | 92.8% | 85 % |
| Band 2 | 83.1% | 70% |
| Band 3 | 61.4% | 50% |
| Band 4 | 37.25% | 25% |
- A reduction in the current capital (savings, investment or property) limit from £10,000 to £6000. This means that people with over £6000 in capital would no longer be eligible for local Council Tax Support. This helps to create a fairer scheme for all households.
- Introduce a non-dependent deduction of £7.50 per week from the Council Tax Support received for people with an income of more than £200 per week. Non-dependents are adults aged 18 or over who live in the same house but aren't your partner, for example a son, daughter or friend. This will make sure all households are treated fairly.
How will I be affected by these proposed changes?
To see how these proposed changes may affect you, please see the case study examples below:
| Household circumstances | Effects of the proposed new scheme from April 2025 |
| A single person/couple with Universal Credit who have earnings from employment. | We'd disregard (not include) the first £30 of your weekly earnings. This is an increase from the current £25 earnings disregard. This means you keep more of your income. |
| A working age household who's not in employment and receive disability benefit. | You'd fall into the newly created protected band (band 1a - protected group) and receive 90% discount to your Council Tax bill. This would be a 2.8% reduction in the amount of support you receive compared with what you currently receive (92.8%). |
| A household currently receiving band 1 CTS, who doesn't receive disability benefit. | You would receive a band 1b award and receive 85% discount to your Council Tax bill. This would be a 7.2% reduction in the amount of support you receive compared with what you currently receive (92.8%). |
| A CTS claimant with £6500 in savings |
You'd no longer qualify for any Council Tax Support as you'll only be allowed £6000 or less in savings to qualify for support. |
| A couple with a non-dependent living with them who earns more than £200 per week | The weekly Council Tax discount awarded would be reduced by £7.50 each week. |
How can I have my say?
We'd like to know your views and thoughts about the proposals we've made for Council Tax Support for 2025/26. Your feedback is vital to us and it will help us shape the new scheme.
The consultation period will start on Monday 21 October 2024 and will run for four weeks. It will close at 12am on Sunday 17 November 2024.
If you, or someone you know can't complete the online form, you can complete a paper copy. To do this, you can:
- Request a copy to be sent to you, call (01226) 787787 and select option 3 (between 10am and 3pm).
- Call into your local library and request a paper copy from a member of staff. Find a library near you.
It should take around five minutes to fill in this consultation. Thank you for sharing your views to help us create a fair and sustainable Council Tax Support scheme.