People’s views will be sought on a possible change to Portsmouth’s council tax support scheme for working age residents from next year, after Cabinet approved a public consultation.
No changes are being made to the council tax support scheme for pension-aged residents.
A survey running for eight weeks will soon go live and will be available at: https://www.portsmouth.gov.uk/services/council-and-democracy/your-say/
The proposal being considered by Portsmouth City Council seeks to provide more financial help for those on the lowest incomes. The change would see many of the approximately 7,500 working-age people claiming council tax support in Portsmouth automatically receive an increase, without having to apply.
Portsmouth’s Local Council Tax Support (LCTS) scheme, adopted in 2013, was and continues to be based upon a now outdated means-tested ‘benefit’ scheme. Due to central government funding cuts, everyone receiving support from the working age council tax support scheme is currently required to pay at least 20% of their council tax bill, including those on the lowest incomes.
At a meeting on Tuesday 1 October, Cabinet members approved a consultation asking people’s views on introducing a new banded scheme for working aged people from 1 April 2025. It would mean individuals and families would receive different levels of council tax support depending on which of the four proposed income bands they are in.
A report presented to Cabinet states the change would simplify the application process, increase LCTS take up, and reduce the current frequent reassessment of council tax bills to give most people greater financial stability.
The change would see the council tax contribution from those on the lowest incomes reduce from 20% to 10%, helping to support those most in need with the cost of living. The discount would reduce for those with higher incomes.
It’s estimated that just over 74% of working age LCTS claimants would either benefit or see no change under the new scheme.
Leader Cllr Steve Pitt said: “It’s estimated that the government underfunds the council’s local council tax support scheme by over £4m per year and because of the strain on our finances, there’s no perfect option for changing our council tax support scheme where everyone benefits.
“To do so would add additional financial burdens that the council is not in a position to meet. What we are considering is a change that would help by far the most people and crucially those on the very lowest incomes, at a time when there’s no respite from high living costs.
“We know people may have differing views on these proposals and we want as many people as possible to share them with us by taking part in our consultation. No change will be made until we have carefully considered every opinion in the survey when it goes live shortly.”
Each year councils are required to review their council tax support schemes, and currently around 100 local authorities, nearly a third, operate banded schemes similar to the one Portsmouth is considering moving to.
The proposal would have no impact on pension-age claimants of the scheme, which offers pensioners up to 100% towards their council tax bill.
Support for older Portsmouth residents
To support its low-income older residents, Portsmouth City Council is reviewing a range of options, including how to use Household Support Funding when the government allocates the next round this winter.
Find out more about how we’re supporting our pension-age residents.
Support for all residents who are struggling
The Cost-of-living helpline and online information hub, for help around essential costs, health and wellbeing, jobs, money and housing, and hardship funding people can apply for. The helpline is open weekdays from 9am-5pm (closes 4.30pm Fridays) on 023 9284 1047, or visit: www.portsmouth.gov.uk/cost-of-living-hub
Switched On Portsmouth, for help reducing energy bills, including referring to energy saving scheme and offering free advice. Call on 0800 260 5907 or visit www.switchedonportsmouth.co.uk.