Finance Minister announces additional £2.8m to support Council Tax Reduction Scheme
Y Gweinidog Cyllid yn cyhoeddi £2.8m ychwanegol i gefnogi Cynllun Gostyngiadau'r Dreth Gyngor
Local councils across Wales will receive an extra £2.8m to help them fund the increase in demand on the Welsh Government’s Council Tax Reduction Scheme (CTRS) since the start of the pandemic.
With large numbers of households being affected by reduced income or unemployment, the scheme has provided a lifeline to many low income households across Wales.
This additional funding will support local authorities by replacing the reduced income they’ve experienced due to the increase in the number of households entitled to CTRS since lockdown began.
Finance Minister Rebecca Evans said:
“Whilst the coronavirus outbreak is affecting everyone, we know that it is having the most significant financial impact on some of the most vulnerable people in our society.
“The funding I am announcing today will provide local authorities with the financial reassurances they need to continue to support those who need it most through our Council Tax Reduction Scheme.
“I would encourage anyone who thinks they may be eligible for help with their council tax bills to contact their council for advice.”
The Welsh Government continues to work with the Welsh Local Government Association (WLGA) and local authorities to understand the longer term effects of increased demand on the scheme and to assess the extent of any decline in council tax collection on local authorities.
Notes to editors
Since the start of the current financial year, it is estimated that applications for the Council Tax Reduction Scheme have risen by approximately 10,000.
The funding covers the increase in reductions for the first quarter of the financial year. The impact will continue to be monitored over the remainder of the year.
As the pandemic continues, there are indications that there may be further growth in CTRS applications over the next few months following the closure of the furlough scheme and recent announcements about redundancies.
Council Tax Reduction Scheme (CTRS)
The Council Tax Reduction Scheme is a vital lever that increases the progressiveness of council tax and tackles poverty in Wales.
On 1 April 2013, the Council Tax Reduction Scheme (CTRS) replaced Council Tax Benefit (CTB) in Wales and eligible households were automatically transferred onto the new scheme. The CTRS Regulations are closely based on previous CTB rules.
Prior to today’s announcement, the Welsh Government provided local authorities with £244m to operate the CTRS scheme this year.
In 2019-20, the average support provided to households was approximately £990 per year. All households are encouraged to contact their local authority if they think they could be eligible or to visit our webpages, particularly if they have recently been migrated to Universal Credit.