Council tax help for low-income Nottingham families could be slashed

The amount of financial help that low-income Nottingham families get to pay for their council tax could be cut significantly under plans which have left some "scratching their heads". Nottingham City Council says any changes will not affect pensioners and that people in receipt of certain benefits will also be protected.

Nottingham's council tax support scheme currently helps working-age households on a low income by covering up to 80% of their bill. The council now wants to reduce this maximum amount to as low as 30% as it says its current scheme, costing over £30 million a year, is too expensive.

Launching a new consultation, which runs until December 16, the council says: "The cost of this support is now over £30 million and expected to rise. We are looking for ways to reduce the money the council spends on council tax support and need to ensure it is viable and affordable in the future, while supporting those who are vulnerable and on low incomes, but ensuring we can maintain vital services."

Are you affected by the council's plans to reduce its council tax support or worried about the changes? Email oliver.pridmore@reachplc.com to share your experience, which can be done anonymously if you wish.

The council says it has not reviewed its scheme since 2013 and that any changes it makes following the closure of the consultation will come into effect from April. Around 19% of households in Nottingham currently get council tax support and the council's scheme is solely aimed at working-age households, with council tax support for pensioners covered by central government.

Councillor Linda Woodings, the council's executive member for finance and resources, said: "The current council tax support scheme has been in place for over a decade. There have been major changes to welfare benefits and reductions in council funding over that time which is why a number of councils across the country are reviewing their support schemes.

"The aim of the proposals is to provide a scheme which is financially sustainable in future years while continuing to support people on the lowest incomes." The amount of money someone gets to support them with council tax is calculated on a case-by-case basis, with factors affecting the amount including household income, how many people are in the household and whether any of those people are disabled or children.

Councillor Kevin Clarke, the leader of the Nottingham Independents and Independent opposition group at the city council, said he has arranged a meeting with council officials to try to understand more about who could be affected. Councillor Clarke said: "I'm scratching my head as I'm sure everyone else is trying to understand how they are going to make these savings."

The consultation does not detail how much the council wants to save but sets out three proposed changes. The council says it wants to reduce the maximum amount of council tax support, currently at 80%, and the consultation features options as low as 30%.

Currently, people can only get council tax support if their savings are less than £16,000 and another proposed change is to bring that threshold down to £6,000. Finally, people can currently get council tax support even if it is calculated that they are only entitled to 50p a week.

The council is planning to change this so that anyone eligible for less than £5 a week will not receive any support. Single parents with children under the age of 5 would still get a maximum 80% discount, whilst child benefit and carers allowance would be among the benefits not counted when assessing a person's income.