The scheme helps support residents on lower incomes with their council tax bills and currently costs the council £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 key proposals is to reduce the maximum level of support available to working-age households from 100% to between 80% and 50% from April 2027. This would mean eligible claimants would be required to pay at least 20% of their council tax bill.

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.

The consultation is seeking views on how the council can balance continuing support for residents on low incomes while also ensuring a fair contribution from all council taxpayers towards the delivery of local services.

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:

"Like councils across the country, we're facing significant financial pressures and must consider how we can continue to provide essential services while supporting residents who need help the most.

"The Council Tax Reduction Scheme provides important support for thousands of households, but it also represents a significant cost that is ultimately met by other council taxpayers.

"One of the main proposals would return the scheme to the level of support that existed before the Covid-19 pandemic. We're keen to hear residents' views on these proposals before any decisions are made, and I'd encourage anyone with an interest to take a few minutes 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.