Lead Member: Councillor Roger Evans, Portfolio Holder for Finance

Lead Officer: Duncan Whitfield, Interim Executive Director (S151)

RESOLVED:

That Cabinet noted the proposed changes below which will be subject to a formal consultation of up to six weeks that will run from September 2026 to October 2026:  

·       Retain the current tapered scheme with following adjustments:  

·       Disregard Child Benefit as an income at an estimated cost of £750k - £800k per year  

·       Retain current 20% minimum payment and maintain current protections for vulnerable groups 

·       Continue to support those impacted by 20% minimum payment with a top up from the Crisis Resilience Fund as follows

? 2026-27 (current year) – up to £80  

? 2027-28 – up to £90 

? 2028-29 – up to £100

Cabinet considered the draft Council Tax Support Scheme and proposals to consult on changes to the scheme for 2027/28. Members noted concerns that households moving onto Universal Credit could face increased council tax liability because child benefit is treated differently within the benefit system.

The proposed changes would disregard child benefit income when calculating entitlement to Council Tax Support, helping to protect low-income families from additional council tax charges. Members recognised that the proposal would reduce council tax income but considered it an important measure to support vulnerable households during the cost of living crisis.

RESOLVED:

That Cabinet noted the proposed changes below which will be subject to a formal consultation of up to six weeks that will run from September 2026 to October 2026:  

·       Retain the current tapered scheme with following adjustments:  

·       Disregard Child Benefit as an income at an estimated cost of £750k - £800k per year  

·       Retain current 20% minimum payment and maintain current protections for vulnerable groups 

·       Continue to support those impacted by 20% minimum payment with a top up from the Crisis Resilience Fund as follows

? 2026-27 (current year) – up to £80  

? 2027-28 – up to £90 

? 2028-29 – up to £100