A council tax scheme designed to support “the poorest and most in need” in Bedford borough is set to continue for another year.
But the council’s portfolio holder for finance, risk and welfare said he was “concerned” that a fundamental review of the scheme has not taken place for “some time”.
The portfolio holder, cllr Graeme Coombes (Conservative, Wixams & Wilstead), said the council tax reduction scheme has been in place for “many years”.
“This discretionary scheme applies to working age households and sets out how council tax support discounts will be calculated based on the income of eligible households,” he said during Wednesday’s (January 10) Full Council Meeting.
“No changes are proposed for 24/25, this means that households with very low income will receive a discount of up to 100 per cent of their council tax.
“[For] 23/24 to date, the council tax reduction scheme has resulted in the awarding of council tax discount to the value of £8.302 million.
“It’s a significant amount of money,” he said.
Liberal Group leader cllr Henry Vann (De Parys) said: “We need to be really clear that we’re not paying out £8 million.
“We are exempting certain people from the collection of that money. Many of those people are the poorest and most in need in our community.
“But I would also say that actually it’s cost-effective as well,” he added.
“You can be morally good and financially effective because the amount of money councils find they spend in chasing people through the courts for payments of tiny amounts of money turns out to be hugely cost ineffective,” he said.
Cllr Ben Foley (Green, Greyfriars) wondered if the scheme might be “overly beneficial” to people who live in homes in Bands G or H.
Cllr Coombes said: “You can actually have £8,000 pounds in the bank at the moment and still get the council tax reduced.
“I’m sure there are people out there who don’t have £8,000 in the bank who are paying full council tax.
“That just strikes me as a little bit unfair so I think this scheme is due a review,” he said.
Councillors were told a review of the scheme will be held during 24/25 and, if approved, a revised scheme could take effect from 25/26.
by John Guinn
Local Democracy Reporter
