Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: November 17, 2025

Purpose:

Content: 10.1 The Senior Revenue and Benefits Manager introduced the report which o provided the Committee with details of the Council’s review of its Council Tax Reduction Scheme and sought approval that the scheme for 2026/27 should not be amended, apart from statutory changes the Council is required to make. In addition, the report sought approval to maintain the Council Tax Hardship Scheme in 2026/27.     10.2 RESOLVED UNANIMOUSLY: That the Finance and Performance Policy Committee:-   a)    Notes the review of the Council’s Council Tax Reduction Scheme, detailed in this report; b)    Agrees that, in line with the review, the Council’s Council Tax Reduction Scheme is not revised, apart from the changes the Council is required to make by statute; c)    Approves the amendments to the Council’s Council Tax Reduction Scheme to accommodate the changes the Council is required to make by statute; and d)    Agrees that the Council’s Council Tax Hardship Scheme continues to operate as detailed in this report.     10.3 Reasons for Decision     10.3.1 Legislation requires each Billing Authority to annually consider whether to revise or replace its Council Tax Reduction Scheme. For that purpose, we have carried out a review of the Council’s scheme     10.3.2 Following from this review, it is recommended that the CTRS remains unchanged, as whilst reducing the support offered through the scheme may help with the Council’s financial situation, this is countered by the fact that the burden will fall on vulnerable households who continue to experience financial hardship as a result of the cost-of-living crisis.     10.3.3 It is also considered that maintaining the scheme in its current form and at the same level of support offers stability and reassurance to households facing ongoing financial pressures.     10.3.4 In reaching this recommendation, the Council has explored increasing the level of support. However, given the Council’s current financial position, introducing a more generous scheme would be extremely challenging.     10.3.5 By maintaining the CTHS, the Council will nevertheless be able to continue offering targeted support to those in the most severe financial need, including those least able to change their financial situation.     10.4 Alternatives Considered and Rejected     10.4.1 Changing the Cap on Liability:   Sheffield replaced the Council Tax Benefit scheme in 2013 with a CTRS which was closely aligned in the way they it calculated entitlement. Most local authorities took the same approach when CTRS was introduced but some tweaked aspects of the scheme for their own purposes. For example, some authorities chose to reduce the capital limit which meant that fewer of their customers with savings would be eligible to claim CTS. Others, like Sheffield, chose to limit the amount of CTS that could be awarded by introducing a cap on a customer’s Council Tax liability. In Sheffield, support offered to working-age customers is capped at 77% of their net Council Tax liability. 10.4.2 Given the advantages of maintaining the current scheme into 2026/27 the alternatives were disregarded.