Council Tax Support Increased to help more people in financial need

The Council Tax Support scheme in Preston is changing on 1 April 2025 to help more working age people pay their council tax bills, depending on their circumstances.

Previously, working age people could qualify for up to an 80% reduction on their bill, but as of 1 April 2025 this has increased to 100% relief for those who qualify.

If you already qualify for council tax support, you do not need to reapply.

Following a public consultation at the end of 2024, a decision was made to increase support.

The decision was also underpinned by research that shows within the UK, 20.3 million adults are financially vulnerable due to factors such as poor health, unstable incomes, insufficient savings, or life events like job loss, bereavement, or relationship breakdowns.

Research conducted in 2024 by think tank 'Policy In Practice' suggests that over 8 million UK households miss out on an estimated £23 billion in unclaimed benefits and discounts each year, and this number is trending upwards at a staggering rate of pace.

Just a year earlier, research indicated the unclaimed support amounted to £19 billion.

The current scheme, also known as the Council Tax Reduction scheme can help with council tax payments and anyone who is liable to pay council tax can apply.

It is designed to primarily help people on a low income and is individually assessed depending on things like household status, any other adults living in the household, personal circumstances, income and savings.

Residents can still apply if they own their own home, rent a property, are in full time employment, on universal credit or receive other benefits.

There is no change to pensioner reductions as they already qualify for up to 100%, and anyone that is currently claiming a reduction in their council tax payments need not re-apply, as changes to the rates of discount reduction will be automatically applied on 1 April 2025.

Any residents who are not already claiming a reduction on their council tax bill and think they may qualify, are urged to check their eligibility status with the new Benefit Calculator.

Cllr Martyn Rawlinson, Deputy Leader and Cabinet Member for Resources at Preston City Council said:

If you are not already receiving a reduction discount on your council tax bill and you think you may qualify, don't delay in applying. There is no official deadline but The sooner you apply, the sooner it can applied to your bill to reduce your council tax.  

The new Benefit Calculator on our website is an excellent tool and really helpful in showing how you can unlock lots of different unclaimed benefits and support that you are entitled to. It also has information on how to make an application and has handy signposts to additional resources, information and support organisations.

Case Study: Barnet Council

In January 2023 Barnet Council launched an initiative to increase council tax collection and maximise income.

An element of this was to launch the In Best Benefit Calculator on its website. In July 2024 it reported the following impressive results:

• 14,000 fully completed Calculator Journeys since March 2023.
• 95% were eligible for a benefit or discount.

Preston City Council actively applies and prioritises the principles of Community Wealth Building wherever applicable and appropriate. Community Wealth Building is an approach which aims to ensure the economic system builds wealth and prosperity for everyone.