More of the city’s poorest households could benefit from proposed changes to Council Tax support in Derby. Cabinet will be asked to approve an 8 week public consultation when it meets on 8 October.
The Council Tax Support (CTS) scheme 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.
Derby’s current scheme is limited to properties in Band A and everyone who receives CTS must pay at least 30% of their Council Tax bill.
Now, the Council is looking into ways to extend this support. The proposal is to increase the property cap from Band A to B and reduce the required contribution from 30% to 20%, meaning that eligible residents would pay a smaller portion of their Council Tax bill.
The Council acknowledges that increases in Council Tax are a significant burden for households and this change is intended support citizens who are struggling the most.
The current cost of the CTS scheme for the year 2024-25 is over £14m. If the proposed changes are implemented, the cost is expected to increase by £1.3m.
The proposals will not be confirmed until the Council receives details of its funding settlement for 2026/27, which is expected late in December 2025. In the meantime, the Council is planning where to place its priorities as part of its medium term financial planning.
A report outlining final recommendations will then be considered by Council Cabinet.
Councillor Hardyal Dhindsa, Cabinet Member for Digital Transformation said:
We know that many residents are struggling with the cost of living, and the time is right to review and strengthen the support we can offer to our citizens.
We remain fully committed to ensuring that any necessary debt collection is approached with the utmost empathy and ethical responsibility. Our priority is, and always will be, to put the necessary support in place to help our most vulnerable residents.
A messaging service for Council Tax payers and sundry debtors is also set to launch shortly. It is the latest application in the Council's pioneering AI programme and follows a similar service that was launched for businesses in June.
Council Tax payers who don’t pay by Direct Debit can in future expect timely emails or text messages to remind them of upcoming payments and when instalments are overdue. This proactive approach aims to help residents avoid arrears and potential costly recovery actions.
The Cabinet meeting will take place on Wednesday 8 October at 2pm. Watch on Derby City Council’s YouTube channel.