The scheme helps support thousands of residents on lower incomes with their council tax bills and currently costs residents £16.4 million each year in council tax income that is not collected. 

The council is consulting on a range of potential changes as part of wider measures to help address future funding pressures and ensure services can continue to be delivered for residents across the county.

One of the proposals is to reduce the maximum level of support available to working-age households from 100% to between 80% and 50% from April 2027. The proposal would return the scheme to the level of support that was in place before the Covid-19 pandemic and would bring Herefordshire more closely into line with arrangements operated by many other councils.

This would mean eligible claimants would be required to pay at least 20% of their council tax bill.  For example, a working-age adult living in a Band A property who currently receives a 100% Council Tax Reduction would pay £5.40 a week if the maximum level of support were reduced to 80%.  This household would continue to receive £21.60 per week in support.

The consultation is seeking views on how the council can maintain support for people on low incomes while ensuring a fair balance between those who receive support and those who pay their council tax in full. It also considers how the council can protect the essential services that local people rely on, particularly services that support the most vulnerable residents, families and children.

Any changes to the scheme would affect working-age households who receive Council Tax Reduction from 1 April 2027. There would be no change for pension-age households.

Cllr Pete Stoddart, Cabinet Member for Finance and Corporate Services, said:

"We've decided to extend the consultation to make sure everyone who wants to have their say has the opportunity to do so.

"This is about finding a fair balance. Council Tax Reduction provides important support to thousands of households and we are committed to continuing that support. However, we also have a responsibility to the many residents who pay their council tax in full and who help fund local services for the whole county.

"Those services include support for children in care, adults with long-term care needs, people with disabilities, and others who need help to live independent and fulfilling lives. As demand and costs continue to rise, we need to make sure we can continue to protect and deliver those vital services in the future.

"The main proposal would return the scheme to the level of support that existed before the Covid-19 pandemic. We know people will have different views and that's exactly why we want to hear from them before any decisions are made. I would encourage anyone with an interest in these proposals to take part in the consultation."

Feedback from the consultation will be considered before any decisions are made on the future of the scheme as part of the council's budget-setting process.

Residents can find out more and take part in the consultation online.