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Proposed changes to the Local Council Tax Reduction Scheme

Members of the public have just two weeks left to have their say on a proposed amendment to the Local Council Tax Reduction Scheme.

The scheme, which has been in operation since 2013, determines when households may be able to pay reduced, or no, council tax.

It is reviewed annually and one amendment has been proposed this year – that from April 2019, the LCTR policy for self-employed earners in receipt of Universal Credit is aligned with Universal Credit regulations.

Currently a claimant’s self-employed books and/or accounts are used to calculate net profit, and the current LCTR policy endorses this. Universal Credit calculates a ‘Minimum Income Floor’ if a claimant is self-employed and their business has been running for more than 12 months. The MIF is an assumed level of earnings, based on what an employed person is expected to receive. It would be calculated using the age-related National Minimum Wage, multiplied by the number of hours a claimant is expected to look for, and be available for, work (35 hours per week). It would also include a notional deduction for tax and National Insurance.

Tamworth Borough Council is asking for people’s views on this proposed change, as well as taking the opportunity to gauge opinion on the main points of the scheme. The Local Council Tax Reduction Scheme consultation went live on Tamworth Borough Council’s website at on August 1 and will run until October 15th.

Hard copies are also available from reception at Marmion House in Lichfield Street.

Deputy Leader of Tamworth Borough Council, Cllr Robert Pritchard, said: “It is important that the council can balance the cost to the taxpayer while supporting the most vulnerable residents. We would like as many people as possible to take part in the consultation and give us their views on the scheme.”

At the end of the consultation, all responses will be considered by the Cabinet before being finalised by the Full Council to take effect from April 2019.

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