STRUGGLING Rugby households on the lowest incomes would not have to pay any council tax under new measures proposed by Rugby Borough Council (RBC).
RBC is to consult on a simplified council tax reduction scheme, after the go-ahead was given at a meeting of the council’s Cabinet.
The council says the proposed new scheme, which provides support to the lowest income households in the borough, will be easier to administer and simpler to claim.
It will increase the maximum amount of support available from 85 per cent of their council tax bill to 100 per cent – meaning some households will not have to pay the tax at all.
The proposed changes also aim to simplify claims for households on Universal Credit.
Currently, minor changes in the amount of Universal Credit claimed trigger a review of council tax reduction, leading to confusion on the amount of council tax due.
The new scheme will introduce discount bands, leading to fewer changes in the support provided during the year.
War pensions and benefits for carers and the disabled will continue to be disregarded when calculating a claimant’s income.
The council estimates around 84 per cent of claimants – 2,770 households – will be better off under the new scheme, and around 5 per cent will be worse off, with 11 per cent seeing no change.
The proposals also include provisions to award exceptional hardship payments to households who will be worse off, should they need it.
Coun Ish Mistry, Deputy Leader of Rugby Borough Council and spokesman for Finance and Performance, Legal and Governance, said the current council tax reduction scheme, which has been in place for the last ten years, was difficult for residents to understand, and complex and time-consuming for the council to administer.
He said: “The new, simplified system will provide more support to eligible residents and reduce significantly the number of changes to an award during the year.
“Most eligible households will be better off and our council tax team will have to issue many fewer updated council tax bills – freeing up time for them to spend on other enquiries.
“I look forward to seeing what residents and partners think of the proposals.”
His Liberal Democrat counterpart Coun Bill Lewis said supporting the most vulnerable residents was key.
He added: “Providing a simplified system, allowing residents more certainty on their bills, is also important.
“We welcome this chance to consult with our residents to see if this new council tax reduction scheme meets their needs.”
Consultation on the proposed scheme is now open, and will close on November 19.
If taken forward, the proposals will be considered at a meeting of the full Council and would come into effect from April 1.
Visit www.rugby.gov.uk/counciltaxreduction for more information, and to take part in the consultation.
