Nearly 7,000 residents set to be impacted as council propose changes to Council Tax Support Scheme

NEARLY 7,000 Warrington residents claiming Council Tax Support are set to be impacted due to proposed changes to make it “fair” for all residents.

Warrington Borough Council’s Cabinet will tonight (Monday) consider a report that recommends the adoption of changes to the Council Tax Support scheme for working-age applicants. It is recognised that the effects of the recommended changes are substantial and will affect a large number of current applicants, but are essential given the current financial circumstances of the Council.

Cllr Denis Matthews – Cabinet Member for Finance, Assets and Investments says: “The Current Council Tax Support scheme costs £14.6m annually. Government funding only covers part of the overall cost.
“The proposed changes will deliver a net saving of £600,000 with effect from 1st April 2026, and bring Warrington in line with our neighbouring authorities.
“These changes will only impact working-age residents claiming Council Tax Support. Pensioners are unaffected by the proposal, with their claims still being determined in accordance with the national scheme.
“The public consultation showed most people agreed to what has been proposed, and the Council will assist residents in particular difficulty through a new exceptional hardship scheme.
“Warrington’s scheme has remained unchanged since 2013. It is only right that it is reviewed to ensure it is both appropriate and adequate, and to make certain it is fair for all Warrington Council tax payers.”

In a report to the cabinet, it states that, as the savings cannot be guaranteed, as they will only be realised when Council Tax is actually collected, it is anticipated that there will be significant additional costs
involved in the collection and recovery of increased amounts from households currently in receipt of Council Tax Reduction. It is anticipated that to achieve the required costs savings a further additional £300k per annum will be incurred in administration costs (collection and enforcement). Therefore, the scheme costs must be reduced by approximately £900k. This includes the cost of additional staff that will be required on the Council Tax Recovery Team in order to collect the additional income.
In addition to cost savings, there is a need to introduce a significantly simplified scheme to aid administration and reduce administration costs – given the amount of work and timescales available, it will not be possible to achieve both changes at the same time, and therefore it is proposed that the changes are phased into two parts:
Phase 1 – 2026/27 – reduction in scheme costs
Phase 2 – 2027/28 – implementation of a simplified scheme
It is recognised that the effects of the recommended changes are substantial and will affect are large number of current applicants, but are essential given the current financial circumstances of the Council.

Minimum payment level – the recommendation is that the Council approve a reduction in the overall level of support to all working-age applicants. to meet the required level of savings, all working-age applicants would be required to pay a minimum of 22% of their Council Tax liability (after taking into account any other discounts that they would be entitled to.
Maximum Capital level – this is currently set at £16,000. The recommendation is that the Council approve reducing the maximum capital level to £6,000 meaning that any person with capital above that level would no longer qualify. Any capital held below £6,000 would be ignored, and there would be no calculation of tariff income.
The effects on Council Tax Support Applicants
Clearly by reducing the scheme by £900,k there will be an immediate effect will be that all working CTS applicants will see a reduction in support. On average, this will mean that 6,978 applicants will have to pay on average £128.96 per annum.
It will primarily affect those applicants that are in a Band A dwelling. Given the large number of Band A dwellings in the Borough (29%), should the Council wish to achieve the savings required, there is little option than to go for across the board savings.

Due to the withdrawal of monies from the scheme, it will be important that the Council has the ability to assist those applicants facing exceptional hardship and as such it is proposed to set up an exceptional hardship scheme which would be funded from the collection fund (as part of the CTR scheme) rather than the general fund (as a S13A1C reduction in liability).
The council is also seeking government approval for extraordinary financial support and permission to raise council tax above the 5% threshold. If granted, this will further increase the amount of council tax payable by those affected by the proposed scheme, should it be fully approved by full council in March 2026.