Council Tax Support Fund
Recognising the impact of rising bills, the government will be distributing £100 million of new grant funding in 2023-2024 for local authorities to support economically vulnerable households in their area with council tax payments.
The government expects local authorities to use the majority of their funding allocations to reduce bills for current working age, and, pension age Local Council Tax Support (LCTS) claimants by up to £25.00.
How much will be the reduction in my Council Tax
The discount should apply to current LCTS claimants that have an outstanding council tax liability for the 2023-2024 financial year.
Where a taxpayer’s liability for 2023-2024 is, following the application of council tax support, over £25.00, then their liability would be reduced by £25.00.
Where a taxpayer’s liability for 2023-2024 is, following the application of council tax support, less than £25.00, then their liability would be reduced to nil.
Where a taxpayer’s liability for 2023-2024 is nil, no reduction to the council tax bill will be available and those bills should not be credited. No cash alternative is available.
It is the government’s intention that any assistance provided from the Council Tax Support Fund will not affect the eligibility of recipients for other benefits.
Do I need to make an application for this reduction
There is need for any recipient of LCTS to make a separate claim for a reduction under this scheme.
It is the Councils intention that this Council tax reduction will be automatically applied from the beginning of the 2023-2024 financial year for existing LCTS recipients and discounts will be reflected in council tax bills issued in March 2023.
For any eligible applications for LCTS received after 01 April 2023, the Council will automatically grant this further reduction.
Monitoring and reporting requirements
Local authorities are required to maintain a record of support provided. In particular, councils should ensure that they are able to monitor and report on the level of expenditure provided to LCTS claimants through the provision of additional discounts.
The Department for Levelling Up, Housing and Communities will undertake a quarterly data exercise to monitor implementation progress of this scheme.