Council Tax Reduction (CTR) scheme

Overview

Each year, the council is required to review its Council Tax Reduction (CTR) scheme.

Council Tax Reduction (CTR) is a system for low income households to help pay towards Council Tax. You may get CTR if you pay Council Tax and your income and capital (savings and investments) are below a certain level.

People of pensionable age are assessed under national rules which the council cannot change. They will continue to have their CTR worked out in the same way as it is now. The council decides on the rules for working age people. There are currently around 12,000 working age households in the city who claim CTR.

It is estimated that in the current 2020-21 year, the working age part of the CTR scheme will cost £11.275m based on current numbers of claims.

The maximum discount for working age claimants is currently 80%, however some authorities offer higher or lower discounts. We are looking at options to make the CTR scheme more supportive next year given the comparatively high housing costs in the city, whilst also being aware of the funding challenges that the council will face.

Options will be finalised in January 2021’s full council meeting, where a decision will be made by councillors, taking into account views from the consultation, alongside the overall budget position.

If we make changes, they would be implemented on 1 April 2021.