LDC Council Tax Reduction Scheme 2022/23 consultation

Lewes District is required to have a Local Council Tax Reduction Scheme for people of working age.

The scheme allows for support for people on a low income who need help paying their Council Tax.

The scheme works as a discount and reduces the amount of council tax someone must pay.  The scheme for pensioners is set by the central Government.

The current, 2020/21 scheme, contains three elements that the council are considering revising. They are:
  1. The maximum reduction a working-age claimant can get is 80% of their council tax liability.
  2. If a claimant qualifies for less than £5 per week, they do not receive any reduction. This is known as the £5 minimum award.
  3. Certain self-employed claimant’s earnings are based on the hourly rate of the national living wage x 35. This is known as the Minimum-Income Floor (MIF).
The council are considering
  1. Increasing the maximum reduction to 100% of their council tax liability.
  2. Removing the minimum awards so a claimant can be awarded less than £5 per week.
  3. Basing a self-employed claimant’s income on their actual earnings.
If these changes are adopted the overall impact will mean that the council will collect less Council Tax.