The proposed changes to the Council Tax Support Scheme will be discussed at a Cabinet meeting on 20 January.
The meeting will consider the proposals with reference to the consultation, which ran from 18 November until 29 December, asking for views about the 2025/26 scheme. The original proposals recommended changing the maximum council tax discount of 100% to 70% for working age households who are not in employment. It also reduced other discounts for working people, depending on earnings, currently ranging from 10-75%, down to 5-50%.
Currently, there are 6,504 working age claimants, including 1,019 who receive a 100% discount on their council tax. All residents currently in receipt of the discount were contacted directly and asked to complete the survey. The survey was open to all residents to share their views.
Feedback from the consultation showed that many respondents did not want to see a reduction, but most supported the idea of a larger hardship fund for those most in need.
Following the consultation, the new proposal recommends setting the level of maximum discount at 80%, instead of 70%, which is in line with two other Berkshire authorities.
The report to Cabinet also proposes doubling the hardship fund from £175,000 to £350,000 in 2025/26 using Household Support Fund resources.
It will also plan to set aside £175,000 in 2026/27, however, this will be kept under review and will inform a decision on the CTS scheme for 2026/27. This will provide targeted support for those experiencing the greatest impacts of the changes to the scheme.
Councillor Mabu Shaik, lead member for I.T, customer services, revenue and benefits, procurement and performance, said: “We are grateful to those who responded to the consultation which helped us to understand how different people would be affected. We will discuss the results at the Cabinet meeting, before making a recommendation to full council. This will be considered at a meeting on 23 January, with the future of the scheme for the next financial year to be agreed.
“Ultimately, we need to run a scheme which is viable and affordable in the future, but which also offers targeted support to households on the lowest income. Being able to increase the amount of money available through the Council Tax Support Hardship Fund is good news and would be for those who need exceptional support.”
This forms part of the budget setting process which will be finalised at a Budget Council meeting on 27 February.
If approved, the new scheme will be implemented from April.