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New council tax support scheme gets the go ahead in Test Valley
A new council tax support scheme will be launching in Test Valley, following approval by borough councillors on Wednesday (29 January 2025).
Since the abolition of council tax benefit in 2013, local authorities have managed local council tax support schemes for working-age households and in Test Valley the scheme broadly mirrored the complex rules of the old council tax benefit. Pension age households will be unaffected by the changes.
The new scheme, which will be taking effect from 1 April 2025, is much simpler for residents to understand.
Residents will be able to easily see what support they are eligible for, as the new scheme is based on a range of income bands. What band you are in depends on how much the household earns and how many people live there, which determines how much support is available.
Like the old scheme, it retains the current protection of 100% council tax support for households in receipt of certain disability benefits and no earned income. All other households could receive up to 90% of their council tax liability through support.
Most households will receive the same or more support under the new scheme, but a discretionary fund has also been set up to provide further support to residents who experience exceptional financial hardship in paying their council tax.
In September last year, a public consultation was launched, and a sample of households were contacted directly to ask for their view, this included all households currently receiving support via the working-age Council Tax Support scheme. The majority of respondents confirmed that they agreed with the changes being proposed from the old scheme.
For more information about the support available, and about your council tax bills, visit www.testvalley.gov.uk/counciltax.
Councillor Maureen Flood, portfolio holder for Finance and Resources, said: “I’m delighted we’re able to launch this new council tax support scheme, which should make it much clearer for residents to understand what help they can get with paying their council tax bills.
“I would like to thank anybody who filled out the consultation last year as it is so important we hear from our residents before any decisions like this are made. If you are in need of support please don’t hesitate to contact the council who can help guide you through this process.”
Cllr Stewart MacDonald, who led the work through the Overview and Scrutiny Committee, added: “Its great news that this new scheme has been approved as it will provide more clarity for residents around what support they can get when paying their council tax. We have been able to work cross-party in an effective and positive way, which I believe helps us make better decisions for all our residents.”