CTR survey findings presented at IRRV Spring Conference

Findings from a Council Tax Reduction (CTR) survey covering England were presented at the Institute of Revenues, Ratings and Valuation's (IRRV) Spring Conference and Exhibition on 18 May 2022¹. The work was carried out by entitledto with the New Policy Institute, and the analysis was done by entitledto benefits expert Karen Holmes¹.

The survey found that 11% of local authorities in England changed how they calculate Council Tax Reduction for 2022/23, a total of 35 local authorities¹. The most common change was to reduce minimum payments for the poorest households, done by 16 local authorities, while only two local authorities increased their minimum payment this year¹.

The second most common change was to introduce an income-banded scheme, by 12 local authorities, and around a quarter of Council Tax Reduction schemes are now income banded¹. Simplifications reported in the survey included abolishing non dependant deductions or setting a flat rate, by 9 local authorities, and removing tariff income on capital, by 6 local authorities¹.

The figures cover changes between 2021/22 and 2022/23, identified by reviewing each local authority's website so that the organisation's benefits calculators hold accurate and up-to-date information on entitlement to this benefit¹. The survey also identified 84 income-banded schemes now in place across the country¹.

Source: entitledto, 18 May 2022¹. The table lists the changes reported; the 35 authorities that made any change may appear in more than one category or in none of those listed.

Why it matters for households

Council Tax Reduction is a means-tested discount on the council tax bill, and each local authority in England runs its own scheme, so the rules that decide how much support a household gets depend on where it lives¹. The survey reports that 35 local authorities changed how they calculate CTR for 2022/23, which means the remaining authorities made no change to their calculation¹. Where schemes did change, the direction most often reported was a lower minimum payment, meaning the poorest households in those 16 areas keep less of their bill to pay themselves, while in two areas the minimum payment rose¹. The 12 authorities that moved to an income-banded scheme join a group that now accounts for around a quarter of all schemes, and the 84 income-banded schemes identified operate across the country¹. Households in areas that abolished non dependant deductions or set a flat rate, or removed tariff income on capital, are affected by simpler calculations for those elements¹.

What happens next

The findings were presented on 18 May 2022¹. No further dates or planned changes to individual schemes are set out in the report, and no timetable for a future survey has been reported¹.