An eight-week public consultation has launched about a scheme which could cut the Council Tax bill for more of the city’s lowest-income households.

Residents, stakeholders and interested parties are being asked to share their views on proposed changes to Derby’s Council Tax Support Scheme (CTS).

The Council is proposing to make the CTS scheme more generous so that more residents on low incomes get the right level of help towards their Council Tax bill.

The CTS scheme has been in place since April 2013 and is designed to help people on low incomes reduce their Council Tax bill. Councils must operate a system for working-age residents and have the discretion to create their own versions.

Council Tax is split into bands (A to H) based on the value of a property, with Band A being the cheapest. In the existing scheme, the maximum discount citizens can receive is calculated based on the lowest Council Tax bill (Band A).

This means that if an eligible resident lives in a more expensive house (Band B, C, D, etc.), their support is capped at the Band A rate. Everyone who receives CTS must pay at least 30% of their Council Tax bill.

The Council is proposing to improve financial assistance by raising the cap from Band A to Band B and reducing the minimum payment from 30% to 20%. This means a significant number of eligible households would pay a smaller portion of their annual Council Tax bill.

People in Band A or B homes would have support based on their actual bill, while those in higher bands (C–H) would have it calculated as if their bill was in Band B.

Councillor Hardyal Dhindsa, Cabinet Member for Digital and Organisational Transformation, said:

This is a significant proposal which demonstrates how we are working in the best interests of our residents and is designed to make our Council Tax reduction scheme fundamentally fairer.

We are actively looking to put more money back into the pockets of low-income families, supporting them to get on in life. I’d urge everyone to use this opportunity to have their say on these important proposals in our city.

Feedback will be carefully considered before final recommendations are presented to Council Cabinet in December 2025, after the Government provides the Council with its funding allocations for the next financial year, 2026/27.

The consultation is open until 7 December 2025 on the Lets Talk Derby website. You can also request the survey in an alternative format by emailing customerservices@derby.gov.uk.