Sandwell MBC - Council Tax Reduction Scheme 2025-26 Consultation

Background to the Council Tax Reduction Scheme consultation

What is Council Tax Reduction?
Council Tax Reduction is a discount that helps people on low incomes pay their Council Tax bill. The level of discount is based on the income of the household. 
 
Why are we making changes?
From 1 April 2025 the Council intends to amend the existing system by make a number of adjustments that assist the Council's finances.

What scheme is the Council proposing?
We are proposing to make changes to the working age scheme that is more financially sustainable for Council Taxpayers.

The changes to the Council Tax Reduction Scheme will affect working age households only in the Sandwell area who will get Council Tax Reduction from 1 April 2025. 

Pension age households will NOT see any change as the scheme to support this group is set out by Central Government.

 

Are there any alternatives to changing the existing Council Tax Reduction Scheme?

We have thought about other options, but we do not think these are right for the reasons given below.

• The scheme will continue to provide a high level of support to those on the lowest income; and
• The new scheme will be focussed on those households with the lowest incomes.

In addition, the proposed scheme will:

• Continue to provide additional assistance to disabled household, by disregarding disability benefits; and
• Continue to support families by continuing to disregard Child Benefit and Child Maintenance

The changes proposed to the scheme will reduce the overall costs of the working age scheme. We have thought about other options, but the Council has to be mindful of the effect on all Council Tax payers especially in relation to the overall costs of the scheme.