Source: City of Portsmouth
Portsmouth City Council’s Cabinet will consider a proposal to consult on a new council tax support scheme for working age Portsmouth residents on low income. The Council Tax Support Scheme for pensioners is not affected by these proposals.
At a meeting on Tuesday 1 October, Cabinet members will review a report seeking changes to the Council’s Local Council Tax Support (LCTS) Scheme from April 2025.
The proposal seeks to provide more financial help for those on the lowest incomes and create a ‘fairer and simpler’ scheme. Many of the approximately 7,500 working-age people claiming council tax support in Portsmouth would automatically receive an increase, without having to apply.
Portsmouth’s Local Council Tax Support scheme, adopted in 2013, was and continues to be based upon a now outdated means-tested ‘benefit’ scheme. Due to central government funding cuts, everyone receiving support from the working age council tax support scheme is currently required to pay at least 20% of their council tax bill, including those on the lowest incomes.
The proposal asks Cabinet to approve a public consultation, to seek people’s views on introducing a new banded council tax support scheme for working aged people from 1 April 2025. It would mean individuals and families would receive different levels of council tax support depending on which of the four proposed income bands they are in.
The report states the change would simplify the application process, increase LCTS take up, and reduce the current frequent reassessment of council tax bills to give most people greater financial stability.
The change would see the council tax contribution from those on the lowest incomes reduce from 20% to 10%, helping to support those most in need with the cost of living. The discount would reduce for those with higher incomes, meaning some residents’ council tax contributions would rise.
It’s estimated that just over 74% of working age LCTS claimants would either benefit or see no change under the new scheme, with 26% having to contribute more.
Leader Cllr Steve Pitt said: “With no additional central government funding, we have to consider options that would help the largest number of people in the greatest need. While the vast majority of people on the scheme would see a lift or see no impact by this proposal, there would be some whose support would reduce.
“So, if a consultation is approved next week, it’s crucial we hear from as many people as possible to consider the impact of this change before coming to any decision.”
If approved, an eight-week public consultation would launch shortly, and feedback would be considered by Full Council ahead of any decision early next year.
Each year councils are required to review their council tax support schemes, and currently around 100 local authorities, nearly a third, operate banded schemes similar to the one which Portsmouth is considering moving to.
The proposal would have no impact on pension-age claimants of the scheme, which offers pensioners up to 100% towards their council tax bill.
Support for older Portsmouth residents
To support its low-income older residents, Portsmouth City Council is reviewing a range of options, including how to use Household Support Funding when the government allocates the next round this winter.
Find out more about how we’re supporting our pension-age residents.
Support for all residents who are struggling is available
The Cost-of-living helpline and online information hub, for help around essential costs, health and wellbeing, jobs, money and housing, and hardship funding people can apply for. The helpline is open weekdays from 9am-5pm (closes 4.30pm Fridays) on 023 9284 1047, or visit: http://www.portsmouth.gov.uk/cost-of-living-hub
Switched On Portsmouth, for help reducing energy bills, including referring to energy saving scheme and offering free advice. Call on 0800 260 5907 or visit http://www.switchedonportsmouth.co.uk.