Changes to council tax reduction scheme to take effect

Changes to the scheme that provides reductions in Council Tax to low-income working age households are being implemented at the start of the new financial year to bring the borough’s scheme in line with other authorities in the Liverpool City Region. 

The changes include the introduction of wider income thresholds bands and changes to the minimum payment for some working age groups. 

From April 2025, all working age residents will be expected to make a minimum payment of at least 17.5% towards their Council Tax and any resident of working age who has more than £6,000 in capital will no longer be able to claim support.

The existing Council Tax reduction scheme was introduced in 2013 and provided residents on lower incomes with a discount on their Council Tax bill dependent on the income of the household. 

However, the changes are overdue, not only so the scheme is consistent with other authorities in the Liverpool City Region, but also to respond to technological advances.

Better and more integrated systems and information sharing with the Department for Work and Pensions (DWP) meant that, under the existing scheme, even very small changes to a claimant’s income were triggering a reassessment of the level of the Council Tax reduction and a recalculation of monthly instalments.

This was causing confusion amongst residents and delays and errors in payments as their bill could change and need to be reissued up to 12 times a year if their income was fluctuating even slightly. 

For people who are experiencing exception financial difficulties which makes it hard for them to make payments, a hardship scheme is in place to provide support. Details of this scheme can be found at www.wirral.gov.uk/council-tax/problems-paying-your-council-tax