Understanding the Local Council Tax Support Scheme
Current Functioning of Our Local Council Tax Support Scheme
Local Council Tax Support is a Council Tax discount for working age people. The level of discount is based on the household income and circumstances. Currently, the maximum discount provided by Rotherham Council is 91.5 per cent of Council Tax for working age households, which is higher than a lot of other similar local authorities.
Pensioners are covered by the National Council Tax Support Scheme, which councils cannot change and is not part of this consultation, and their maximum discount will remain at 100 per cent.
Impact on Pension Age Residents
The scheme for pension age residents is set by Central Government and is not affected by the options set out in this consultation.
Current Cost of the Scheme
The overall cost of the scheme (value of discounts provided) is currently around £25.13 million per year, of which £9.41 million is for pensioners for whom Council Tax Support will not change.
The cost of the Local Council Tax Support scheme for working age claimants is currently £15.72 million per year, which is split between Rotherham Council and its preceptors (Fire and Rescue, Police, and Parish Councils). Rotherham Council’s share of the cost equates to £13.35 million per year.
Effects of Proposed Changes on Different Households
We cannot say how these proposed changes would affect every individual claimant. We have, however, prepared some examples that illustrate how different households might be affected. These do not necessarily show how you would be affected, even if your circumstances match one of the examples. Each example relates to one of the changes being taken in isolation. Should multiple options be adopted, some claimants will receive increased reductions in their Local Council Tax Support and as such have to pay more Council Tax.
Examples of the effect of each of the proposed changes on individual claimants along with estimates of the overall change to the cost of the scheme are available.
Local Council Tax Support Scheme: Case studies and estimates of overall savings