Changes to council tax support could affect a quarter of claimants

St Albans City Council is proposing to change the way it calculates how much support those on Universal Credit receive.

Universal Credit, which replaces traditional benefits such as tax credits and housing benefit, varies with any change in the recipient’s income, meaning the council has to recalculate an individual’s tax support every month.

The proposal, which will introduce a series of income bands to determine the amount a claimant is entitled to, will be implemented in April 2019 if approved.

The council is now urging people to have their say.

Around 25 per cent of the 689 residents currently receiving council tax support will be affected.

The council's principal benefit officer Richard Skilbeck said that 106 claimants will receive more support after the changes, with 58 becoming eligible for less.

He added that in St Albans, residents can potentially receive a 100 per cent discount on their council tax charge - one of two Hertfordshire councils to implement this.

The proposed bands suggest that those earning under £284.99 a month will pay nothing in council tax. Claimants who earn between £285 and £2,750 will have an incremental increase in tax contributions as they move between income bands, while people earning more than £2,750 a month will not be entitled to council tax support.

The council claims the new system is less complex, ensures financial stability and allows claimants to earn more money within an income band without paying more council tax.

However, the council also admits the proposed income bands may mean some claimants receive less help than they do currently. Another issue is that claimants’ council tax could increase more than their increase in earnings when moving up an income band.

Cllr Brian Ellis, who is responsible for housing and social inclusion, said: “I very much hope people who may be affected will submit their views. We want to ensure that any change we introduce is well understood and supported.”

Residents are urged to submit their views about the proposed change by emailing CTSFeedback@stalbans.gov.uk by 5pm on October 31.