Somerset Council is taking steps to support people on low incomes who may be impacted by national changes to benefits.
Each year, the Council is required by law to set a Council Tax Reduction (CTR) Scheme which offers a discount for taxpayers on low incomes.
At today’s Executive, members agreed to recommend a CTR scheme for the 2026-27 financial year and also uplift income band thresholds by 3.8% in line with the CPI increase to most state benefits. This uplift will maintain the value of the discount in real terms for most households.
However, members also discussed an indirect impact on some individuals who are transitioning from a former benefits system to Universal Credit (UC) and who lose an automatic entitlement to a 100% discount on their household Council Tax charge.
Members agreed to ensure that appropriate measures are in place to assess anyone adversely affected through the council’s means tested Exceptional Hardship Fund.
Cllr Liz Leyshon, Somerset Council’s Executive Lead Member for Resources, Procurement and Performance, said:
We know many people are rightly concerned about the impact of these national changes on their Council Tax Reduction support.
While we cannot make significant changes to our CTR scheme this year, as we do not have time for a comprehensive review and public consultation, we do have the ability to ensure anyone impacted can seek support via our Exceptional Hardship Fund.
We have always taken steps to provide support for residents with the greatest need and I would encourage anyone concerned to speak to our teams about the different support packages which may be available to them.
The three amendments agreed by Executive were as follows:
- That Executive endorse the establishment of a Task and Finish Group as resolved by Corporate and Resources Scrutiny.
- Note that should the £800,000 from Household Support Fund be inadequate to cover the Exceptional Hardship awards in the current year, additional funds will be made available from Reserves.
- Note that the Revenues and Benefits team will be further resourced if necessary to complete work on identifying those who have been migrated from Income Related Employment and Support Allowance (IRESA) to UC and to support them to apply for Exceptional Hardship if appropriate.
The Executive papers with full details can be found on the Council’s website.
The Council Tax Reduction Scheme is reviewed every year, with a major review planned to take place during 2026-27. A final decision on next year’s CTR scheme will be taken at Full Council on 17 December.
