Proposals to cut council tax support for low-income residents have been backed by Slough councillors – as current discounts are ‘no longer affordable’.
The Council Tax Support Scheme (CTS) is run by local authorities to support low-income residents with paying their council tax.
Residents can get discounts depending on their income, savings levels and the size of their household.
In Slough, there are 6,466 working age households who receive council tax support. Only 921 of these households will be unaffected by the cuts.
Currently, non-working residents can receive a maximum 80 per cent discount on their bill, while working residents can get up to a 50 per cent discount.
But under the option preferred by the council, the maximum discount would be reduced to 70 per cent for non-working residents, and by 20 per cent for those who are working.
Pensioners will not be affected by the changes.
A report which went before cabinet members yesterday (Monday) advised the council has ‘one of the most beneficial CTS schemes within Berkshire and its scheme is more generous than many other councils in the local area and statistical neighbours’.
At the meeting at The Curve, council leader Dexter Smith (Con, Colnbrook and Poyle) said the local authority cannot be ‘overly generous’ with its discounts because the council continues to need financial support from the government.
Cllr Puja Bedi (Con, Colnbrook and Poyle) agreed and said this level of council tax support is ‘no longer affordable’ as the council continues on its ‘financial recovery’.
The scheme costs Slough Borough Council £10.44million but the proposed cuts would save approximately £872,200.
But addressing the councillors sitting on the cabinet, Cllr Sabia Akram (Lib Dem, Farnham) urged them to ensure residents engage with a consultation on the changes before any final decisions are made.
“This [scheme] will obviously have a financial impact in what are dire times for many people” Cllr Akram said.
“There are average income households that are struggling with the cost of living right now.”
For residents who will still need extra support, Cllr Bedi said that the £350,000 Council Tax Hardship Support Fund (CTHSF) is still available.
This is a pot of money available for those who are experiencing ‘extreme financial difficulty’ and are unable to pay their council tax.
The officers’ report said that out of the 533 hardship fund applications submitted in the first six months of this financial year, only 80 people were awarded the support and 85 failed to provide supporting information to get the funding.
During last night’s meeting, Andy Jeffs, the council’s director of revenue and welfare services, said that the number of residents who failed to provide the supporting information had grown to 130.
If the information is not provided within a set timeline, these applications are then rejected.
Cllr Ishrat Shah (Con, Cippenham Green) said: “People are struggling, they are coming to us saying they need some support. So, if somebody did not provide the evidence [needed], rather than rejecting [their application], write to them.”
Mr Jeffs agreed and said the council needs to do more to communicate with residents and inform them that this money is available.
“We will be writing to all of those [impacted] households. We will knock on their doors,” Mr Jeffs said.
An eight-week consultation will take place from October 27 to December 21 to get feedback on the proposed cuts.