Northumberland Reform councillor claims new council tax support scheme is 'too generous'

The system provides relief from council tax for the poorest and most vulnerable households.

The overhaul will mean the overall costs of the scheme are reduced, while support is targeted at the lowest income houses. It will come into effect from April 1.

Cllr Nick Oliver, Northumberland County Council portfolio holder for finance, said: “This is one of the most important decisions we make every year. We have 23,000 claiming benefit across the county – 14,000 are working age and the rest are pensioners. This doesn’t apply to the pensioners.

“We spend £28 million a year on council tax support. We’re currently looking to make well in excess of £30 million in savings.

“We’re seeing rising demand for our core statutory services and huge inflationary pressures. We need to bear all of that in mind as we debate this.

“Currently we have the second most generous scheme in the North East, but we are facing rising costs every year. We are one of the few local authorities in the country without a banded scheme – we’re proposing to move to that.”

Under the new system, 6,235 people will receive more support while 7,771 will receive less. However, 4,593 of the poorest will receive 100% support, while currently the maximum level of support is 92%.

Just 217 people will no longer receive any support.

A report presented to cabinet members highlighted the cost of the scheme for working age claimants has risen from £13.2 million to £16.3 million since 2019/20 due to increases in council tax and the number of people eligible for support.

However, Reform councillor Stephen Flower said he felt the new scheme went too far. He said: “You’re being too generous.

“You need to start cutting some of the money that people are getting. It’s really important that we help the people right at the bottom, but the council is in debt.

“You can’t afford to be more generous. You’re borrowing money to give it away – it’s like somebody with a credit card just paying the interest and continuing to spend.”

Labour has previously clashed with the council over the support scheme after the Tories reduced the maximum level of support from 100% to 92% in 2019. However, Labour leader Scott Dickinson said the party supported the new changes.

He said: “This is the type of scheme I would have liked to have seen in 2019 when the first battle on this came round. Credit to the officers because everybody has worked really hard, listened to members’ concerns and came up with a scheme that really supports households and makes sure the most vulnerable are supported.”

Responding to Cllr Flower’s comments, Cllr Oliver said: “My view is to try and get people into a position where they no longer need the support and give them better job opportunities, skills training and try and find ways to improve their health outcomes. It is probably a nuanced difference but I understand where you’re coming from.

“We don’t borrow money for this. It will have no impact on our debt.”