Update on Council Tax Support Scheme to be heard

The results of a consultation about proposed changes to the Council Tax Support Scheme will be heard at Cabinet on Monday 19 January.

An eight-week consultation ran from 27 October to 21 December, where there was an online survey, letters were sent to all impacted working age council tax support claimants, voluntary and community sector groups were asked to share their views, and there were daytime and evening drop-in sessions at our community hubs.

In the 2025/26 scheme, the maximum level of council tax discount is 80% for working age households who are not in employment, and the proposal for 2026/27 is to reduce this to a maximum of 70%.

A reduction by 20% in the other discounts for working households, depending on income bands, is also proposed. If the proposed revised scheme came into place, it would deliver a total gross reduction in CTS expenditure of £872,198.

In total, there were 163 responses to the consultation, of which 84% were receiving the support, and 16% were not.

Feedback from the consultation was taken into consideration, however, the proposed plans remain the same and would bring the council in line with three other Berkshire authorities in terms of the support offered.

The changes proposed would result in a reduction of between £126 and £200 per year, for the households affected.

Responses to the consultation supported continuing with a Council Tax Support Hardship Fund for 2026/27. The proposal is for this fund to be reduced from £350,000 in this current financial year, to £175,000 in 2026/27, for those experiencing the greatest financial hardship.

As of 31 December 2025, a total of 137 households had been awarded money from the 2025/26 hardship fund, totalling £66,315.

Work is underway to improve take up of the scheme across all groups for the remainder of the financial year.

Cabinet is asked to recommend that the revised scheme be approved to come into effect on 1 April.

Councillor Puja Bedi, deputy leader and lead member for finance, said: “Reducing the level of support is not a decision we have taken lightly. We recognise that any reduction is likely to impact low-income households the most. However, this is a discretionary discount, and given the council’s current financial position, we must make hard choices to ensure our finances remain sustainable. These changes would make a significant contribution towards closing the projected budget gap in 2026/27.

“While the feedback received did not result in changes to the proposal, it has been carefully considered. We recognise that support will still be needed for those most in need and have therefore committed to keeping our council tax support hardship fund open for applications.

“In addition, we will provide targeted support for those who would experience the greatest impacts of any agreed changes to the 2026/27 scheme.”

There are currently 6,466 working age households in receipt of council tax support.

There would be no changes to the scheme for pensioners in 2026/27, as this is set nationally.

Cabinet’s recommendation over the CTS scheme will be taken to full Council to agree a scheme by March, and any savings identified will be included in the council’s overall 2026/27 budget.

The Cabinet papers can be found online.