Families facing council tax relief cut

COUNCIL tax support might be cut by Hinckley and Bosworth Borough Council.

Currently the scheme offers to pay up to 88% of the levy for people who are struggling due to financial constraints.

Authorities across Leicestershire and Warwickshire have been told to review the policy to cut costs but still protect the most vulnerable.

Proposals to either keep the existing cap at 88% or reduce it to 80% will be discussed by the full council in January.

Scrutiny committee members were given an update on the issue at their last meeting.

They were told the current caseload for support in the borough is 5,837 households, with 3,102 of them being pensioners.

Pensioner households will remain in receipt of a 100% reduction but working age households will be affected made.

Some £4.66 million is spent on the current scheme with £1.98 million spent on working age households.

This is expected to rise to £2.05 million in 2017/18.

If the proportion of payment is decreased from a maximum 88% to 80% the council would save more than £200,000 and 33 families would be removed from if changes are receiving any support. A wider number of households would face a reduction in relief.

However, should they wish councillors could strip the cap back to 70%, a move encouraged by Leicestershire County Council which would benefit the most from the extra income.

Under legislation any changes to the support scheme which will come into effect next April need to be made by January 31.