Local Council Tax Support Scheme: Case studies and estimates of overall savings

The table below shows the potential annual reduction in the cost of the Council Tax Support Scheme to Rotherham Council if it changed the scheme in line with Option 4.

Example 1

• The claimants are a couple and have two children aged six and three. One parent is unable to work and receives £90.50 Employment and Support Allowance and the other works part-time receiving £83.46 per week. They also receive £184.91 per week Universal Credit and £42.55 Child Benefit, a total weekly income of £401.42.
• They live in a Band B property and without Local Council Tax Support they would have to pay £32.10 per week.
• Under the current scheme they receive £10.33 per week Local Council Tax Support (maximum Council Tax Support £29.37 less £19.04 due to their income) leaving them with £21.77 per week to pay.
• If the Council increased the taper to 35 per cent they would receive £7.16 per week Local Council Tax Support (maximum Council Tax Support £29.37 less £22.21 due to their income) leaving them with £24.94 per week to pay.
• This means they would pay £3.17 per week more.

Example 2

• The claimant is single and works part time earning £90 per week and she also receives a private pension of £40 per week – total weekly income of £130 per week.
• She lives in a Band A property and receives a 25 per cent single person discount. Without Local Council Tax Support she would pay £20.64 per week.
• Under the current scheme she receives £8.54 per week Local Council Tax Support (£18.89 maximum Local Council Tax Support less £10.35 due to her income) leaving her with £12.10 per week to pay.
• If the Council decreased the taper to 25 per cent she would receive £10.26 per week Local Council Tax Support (maximum Local Council Tax Support £18.89 less £8.63 due to her income) leaving her with £10.38 per week to pay.
• This means she would pay £1.72 per week less.

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