A NEW council tax support scheme which supports thousands of Barnsley’s hardest-hit residents is set to be approved by councillors in the new year.
The current scheme has been in place since April 2022, providing valuable support for the town’s most vulnerable people.
The council say that the scheme will now need to reviewed as local circumstances have changed but they admit it is important that the scheme does not discourage people from seeking employment and instead staying on benefits.
Currently the council use income and savings to calculate whether or not a household will be eligible for support but they don’t include certain income types such as child benefit and disability allowance.
The new scheme, which has passed through the consultation stage, will see a number of proposed changes.
This includes raising the current earning disregard form £25 to £30 per week.
Earning disregard is the amount of earned income the council deduct from your income before calculating the support you may receive.
This means you can earn and keep more of your earned income before the council calculate which income band you fall in and how much help you’ll get.
This proposal will support the Pathways to Work Commission and encourage people to start working.
This is because they’ll know they can earn more without it impacting the help they’ll get.
However, the discount locals receive of their council tax is set to drop.
For example, those currently in band 1B will see pay 15 per cent of their council tax instead of 7.2 per cent, and those in band four will pay 75 per cent rather than 62.75 per cent.
People who have savings less than £10,000 are currently eligible for the scheme but it’s proposed that this figure drop to £6,000.
Each of the proposes changes saw more people agree than disagree - and cabinet members are set to approve the support scheme at a meeting in January.
A report states: “The council currently operates a Local Council Tax Support scheme (LCTS) that provides financial support to eligible claimants.
“Under the support provisions, the scheme for pensioners is determined by central government whereas the scheme for working age claimants is determined locally by the council.
“During the Covid-19 pandemic the number of households claiming LCTS increased significantly, and the numbers claiming have never returned to pre-pandemic levels.
“This sustained increase in numbers has continued to significantly reduce the council tax base.
“During the summer of 2024 a full fundamental review of the current scheme has been carried out. “It is good practice to regularly review the scheme to ensure it continues to provide the right level of support in consideration of local circumstances and is financially sustainable into the future.
“The review concluded in the autumn 2024 with a public consultation which invited our major preceptors and local residents to comment on the proposed changes to the current scheme.
“Based on the positive responses received to the consultation, there will be no additional changes made to the proposals above.
“The scheme will be updated, and the five amendments will come into effect from April 1, 2025.”
