Newham

Council Tax Reduction Consultation

Newham offers a reduction in Council Tax to residents who might struggle to pay the full amount. The council does this by agreeing a local Council Tax Reduction scheme for working-age residents. ​​​

What are the proposals?

There are two proposals. Both of these proposals only affect working age households that receive Council Tax Reduction. These proposals do not affect pensioners who receive Council Tax Reduction.

Proposal One

The minimum contribution households have to pay is 20% of their Council Tax bill.

We are proposing to reduce this minimum contribution to 10% or 15%.

In 2017/18, the average Council Tax bill for these households was £362.71.

If we reduced the minimum contribution to 15%, the average Council Tax bill for these households would have been £316.27. 

If we reduced the minimum contribution to 10%, the average Council Tax bill for these households would have been £268.28.

The proposed changes will reduce the income the Council receives through Council Tax. Based on Council Tax in 2017/18, we estimate that reducing the minimum contribution to 15% would cost the Council £678,000 per year and reducing the minimum contribution to 10% would cost the Council £1,360,000 per year.

This change would affect 18,703 households.

Proposal Two

The second proposal relates to households where a liable person is receiving Universal Credit. 

Universal Credit is assessed on a monthly basis, based on a person’s circumstances in the previous month, so the amount a person receives through Universal Credit may change from month to month.

Currently, our Council Tax Reduction Scheme works in a similar way: a person’s entitlement is reassessed after each change in Universal Credit. 

We are proposing that households in receipt of Universal Credit are awarded the maximum reduction in Council Tax, after any minimum contribution and deductions for other adults in the household. This will give these households a degree of certainty in terms of the amount of Council Tax they will have to pay.

Based on the number of households currently receiving Universal Credit, this proposal would affect 208 households. However, this number will increase as more households are moved onto Universal Credit.
 
 

Why is Newham proposing these changes?

These proposals will reduce the financial burden of Council Tax on low income working age households and offer a degree of certainty in terms of the amount of Council Tax they will have to pay each month.
 
 

How can I take part?

This questionnaire will be available online until Wednesday 16 January 2019.
​​Complete the consultation​ questionnaire
If you have any questions or would like to request a paper copy of the questionnaire, please email CTRconsultation@newham.gov.uk​

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