THE POOREST households in Rugby are set to pay less council tax under plans to increase financial support for low-income residents, which have been backed by Rugby Borough Council’s (RBC) cabinet.
The council has drawn up a new ‘streamlined’ council tax reduction scheme to simplify the application process and increase discounts for the borough’s lowest income households to up to 100 per cent.
A report to a cabinet meeting recommended introducing the new reduction scheme for the 2026-27 financial year – the first change to the scheme since its introduction 12 years ago.
Reduction schemes were introduced by the government to support low-income pensioners and working age applicants struggling to pay council tax.
While the government sets the rules of the scheme for pensioners, councils set the criteria for working age applicants.
RBC deputy leader and finance spokesman Coun Ish Mistry said the council was determined to focus support on the borough’s lowest income households.
Modelling of the new reduction scheme indicated 92 per cent of households currently receiving council tax reduction would receive more financial support, while 7.7 per cent would receive the same support.
The new scheme introduces discount ‘bands’ which take into account a household’s weekly net income, size and number of dependents.
When calculating net income, the council disregards disability and carers benefits, war pensions, child benefit, child maintenance and a number of elements of Universal Credit.
Coun Mistry said the new scheme would be easier to understand and administer – ending a complex application and administration process.
He said: “We know the cost of living presents a significant challenge for households across the borough, but it’s only right we target our resources on the lowest incomes.
“By simplifying the scheme, we can give households greater clarity on the amount of financial support likely to be received, streamline the application process and speed up the time it takes to process applications.
“This promises to make our most vulnerable households better off and deliver significant efficiency savings for the council.”
Efficiency savings of around £75,000 are set to cover the additional cost of the scheme for the council in 2026-27, with proposed increases to council tax on empty properties in the borough set to fund the scheme thereafter.
Under the new scheme, struggling residents who do not meet the criteria for council tax reduction can apply for an exceptional hardship payment.
Coun Bill Lewis, RBC’s Liberal Democrat group finance spokesperson, said: “The new council tax reduction scheme benefits those in our community who most need financial assistance, further moving us towards a fairer society.”
The council is set to make a decision on the new scheme at a meeting on Wednesday (December 10).
