Kirklees Council to consult residents on Council Tax Reduction Scheme changes that could cut costs by up to £4.3m per year

The Council Tax Reduction Scheme (CTRS) is the way the council helps people on low incomes pay their council tax bill.

The current scheme is due for review and the council will ask residents to have their say on possible changes.

The current scheme subsidises council tax payments for approximately 13,500 households in the district and costs the council approximately £35.5m per year.

The council has also spent £8m this financial year from the Household Support Fund and other welfare provisions.

Due to inflationary pressures and demands on services, the council currently forecasts an overspend of £20.3m on its £380m annual revenue budget for the current financial year.

Extra demand for services such as child protection and residential placements for children in care have been the main drivers for increased costs, alongside social care for older people and residents with learning disabilities.

Inflationary pressures on goods such as food for school catering services and IT equipment are also driving up costs for the council.

The two options for changes to the CTRS could, if implemented, reduce the cost of the scheme by up to £4.33m per year.

Coun Paul Davies, cabinet member for corporate services, said: “In these challenging times, we are committed to protecting our most vulnerable residents whilst ensuring that support is equitable and realistic.

"Our council tax reduction scheme currently provides more support than any other West Yorkshire Local Authority and, even with the potential changes, will remain better or in line with others.

"The proposed changes could mean that millions of pounds of taxpayers’ money can be redirected to other vital council services and on providing continuing support for our lowest income households.

“A public consultation will allow residents to have their say on these proposals with a decision to be made ahead of the new financial year in April 2024.

“There are already provisions in place for those in severe hardship and that support will continue.”

The consultation will run for eight weeks and will be accessible via the Kirklees Council website.