Council Tax Support scheme changes

Runnymede has decided to change the Council Tax Support (CTS) scheme, for those of working age, from 1 April 2025. 

Why change the CTS scheme?

The main drivers for change are

• Universal Credit (UC) – the scheme needed updating to reflect that UC has and will continue to expand with more people claiming and receiving UC
• Cost of living squeeze on household budgets

The Revised Scheme – from 1 April 2025

For those of working age only:

• The Additional Earnings disregard £17.10 has been removed 
• For those in receipt of Universal Credit we are introducing an Income Banded scheme 

Income Banded Scheme

From April 2025 we have introduced a new way to work out Council Tax Support for residents who are also receiving Universal Credit.

This does not apply to pensioners and people of working age who do not receive Universal Credit. Their entitlement will continue to be calculated under the scheme in place in 2024.

Council Tax Support scheme for those receiving Universal Credit

This scheme looks purely at whether someone receives Universal Credit and is working and if so, what their net monthly earnings are. We will receive this information directly from the Department for Work and Pensions, telling us whether it is employed or self-employed earnings and how much.

Our scheme has a series of 'income bands' and we will work out a claimant's entitlement to Council Tax Support based on what band their earned income falls within. A banded scheme means that small changes in a claimant's income will not necessarily change their entitlement to Council Tax Support.

The maximum weekly Council Tax is either 80% of Band D or 90% of Band D for those in the vulnerable group.

Our scheme will only look at a claimant's earned income. We ignore any Universal Credit or any other income which you may receive. 

What we think that the advantages of this scheme are:

• It gives stability to those whose wages fluctuate by a small amount each month.
• People who are receiving Universal Credit but not working or only earning a small amount will receive a full discount of either 80% or 90% if in the vulnerable group (subject to any non-dependent deductions).
• It is less complex and easier to understand.
• It allows those on Universal Credit to earn more money without it necessarily increasing Council Tax payments.
• It will be simpler to administer and may allow the council to make savings in administration costs.