Extra £2.6m for local authorities to support Council Tax Reduction Scheme

Friday, 27 November 2020 09:15

Local councils across Wales are set to receive an additional £2.6m to help them meet the increasing demand for the Welsh Government’s Council Tax Reduction Scheme. With large numbers of households facing reduced income or unemployment due to the pandemic, the scheme continues to provide a lifeline to many low income households across Wales. This additional funding takes the total amount of covid-19 support for the scheme to nearly...Request free trial

Local councils across Wales are set to receive an additional £2.6m to help them meet the increasing demand for the Welsh Government’s Council Tax Reduction Scheme.

With large numbers of households facing reduced income or unemployment due to the pandemic, the scheme continues to provide a lifeline to many low income households across Wales.

This additional funding takes the total amount of covid-19 support for the scheme to nearly £5.5m, helping local authorities to manage the increase in demand without compromising the services they already provide.

Finance Minister Rebecca Evans, said:

“The additional funding I am announcing today will provide local authorities with the financial reassurance they need to continue to support those who need it most through our Council Tax Reduction Scheme.

“I would encourage anyone who thinks they may be eligible for help with their council tax bills to contact their council for advice.”

The Welsh Government continues to work with the Welsh Local Government Association (WLGA) and local authorities to understand the longer term effects of increased demand on the scheme and to assess the extent of any decline in council tax collection on local authorities.

Councillor Anthony Hunt (Torfaen), WLGA Spokesperson for Finance and Resources said:

“Councils know that many people have experienced financial hardship during this period and we want people to know that we are here to help. These are exceptional times and we are seeing increases in applications for support right across Wales. If you are having difficulty in paying your council tax please contact your local authority to ensure you are getting all the assistance available.”

Notes to editors

Since the start of the financial year, it is estimated that applications for the Council Tax Reduction Scheme have risen by almost 10,000.

The additional funding covers the continued pressures on the scheme for the second quarter of the financial year. The impact will continue to be monitored over the remainder of the year.

There are indications that there may be further growth in CTRS applications over the next few months as the pandemic continues to have an impact on employment conditions and the job market.

Council Tax Reduction Scheme (CTRS)

The Council Tax Reduction Scheme is a vital lever that increases the progressiveness of council tax and tackles poverty in Wales.

The Welsh Government currently provides an annual budget of £244m to support the CTRS scheme. Throughout this current Senedd term, the Welsh Government has made commitments to maintaining entitlements to CTRS.

In 2019-20, the average support provided to households was approximately £990 per year. All households are encouraged to contact their local authority if they think they could be eligible or to visit our webpages, particularly if they have recently been migrated to Universal Credit.