Council proposes lowering the level of council tax support for working-aged people

A council has proposed lowering the level of council tax support it provides for working-aged people, despite some councillors admitting it was a “tough choice” to make. 

Members of Boston Borough Council Cabinet recommended the proposal be considered at a full council meeting after a public consultation showed that most people supported the authority providing a lower level of support.

Under the proposed scheme, the maximum level of support will be reduced to 90% for lone parents, 80% for couples with children and 75% for all other households.

The borough council’s current scheme provides the maximum level of support of 100% for working-aged households with families and 85% to all other households.

In the consultation, 43% of people who took part said that they supported a reduction in the level of council tax support. 

The borough council said that 35% of residents thought that the current scheme should remain in place. 

At a meeting on Wednesday, December 10, councillors discussed the outcome of the consultation to change the level of council tax support to working-age people.

The proposed changes will not affect pensioners. 

Russell Stone, director of finance at the South and East Lincolnshire Councils Partnership, said: “Having regards to the results of the consultation and the considerations set out within the report, also looking at the potential implications of households in receipt of council tax support, the recommendation is to reduce support in line with option two.

“Option two would be the more generous of the two options for those in receipt of support.” 

But Mr Stone admitted that the borough council didn’t receive “a huge turnout” – with only 65 electronic responses received. 

In the consultation, the borough council also put forward two other options including maintaining the current level of support of 100% for working-aged households with children and 85% for all other households and ‘find the savings elsewhere’.

The other option was to reduce the level of support to 90% for lone parents, 80% for couples and 70% for all other households.

The current level of support costs £2.6 million – with £348,000 of that cost being paid by the borough council. 

The new scheme is expected to reduce the council’s expenditure by £338,000 and save it £45,000. 

Coun John Baxter (Independent – Old Leake and Wrangle ward) said: “From looking at this, initially, you’d think, 100% is good, but like everything else in the world today, we have economies and hardship and I would say that I agree with the recommendation of option two.”

Coun Baxter added that he was “pleased to read” that the borough council would “have discretion” and would provide additional support for households “experiencing exceptional hardship”.

But Coun Mike Gilbert (Blue Revolution – Staniland ward) admitted that it was a difficult thing for councillors to have to consider.

He added: “This is the sort of issue which is quite polarising really because people tend to take the view that when you’re reducing welfare, you’re doing something which you can probably avoid if you really found money elsewhere.

“I voted in favour of the full 100% support when this went to full council last year and I was inclined on this occasion to abstain because I thought it’s not instinctively something that I want to put my name to.”

But Coun Gilbert went on to say that despite it being a difficult decision, he felt that the authority had struck the right balance. 

He said: “When you consider the issues that Councillor Baxter’s mentioned about the borough council’s finances and when you also consider that as a fairly low wage community, we actually have a lot of people who are in work, on low wages, who are having to meet the full 100% payment from their own income.

“This is not so much about doing something harmful to those people who are claiming welfare, but actually looking at the other side of the equation which is those people having to work to pay their council tax. I think this strikes a very fair balance.”

Leader of Boston Borough Council Dale Broughton (Independent – Coastal ward) said: “Times are hard all the way through the country at the moment and obviously working families and individuals, money is very tight.

“I think this is the fairest scheme and the fairest option which balances everything.”

But Coun Stephen Woodliffe (Independent – West ward) said it was a “tough choice” for him to make. 

He said: “I appreciate everything that’s been said tonight. We live in hard times and people, of course, who have got children are also struggling and have every right to turn round and say ‘well look, nobody’s helping me’. 

“I do understand that, it’s a very tough choice I think. I’ve got no criticism in the cabinet at all on this. 

“I appreciate your situation and you’ve got to make the right decision with the money we’ve got and so on, it’s just I’m very wary about making life hard for people who have children.

“It’s a tough world out there. Children don’t choose their parents, they land with the parents they’ve been given.

“There are some situations where there is no money or very little money in the household and you’re also asking them to pay a proportion towards council tax.”

The proposed changes have been considered at a full council meeting at a later date.