Isle of Wight Council

Local Council Tax Support - Scheme

The Scheme 2020/21


The Isle of Wight Council consulted with the public on changes to the Local Council Tax Support (LCTS) scheme for working age claimants between June and August 2019.

The Council Tax Reduction (CTR) scheme for Pension Age claimants is set by Government and you will not be affected by these changes.  The changes will affect working age claimants who currently receive LCTS or may apply in the future.

We made changes to our Local Council Tax Support scheme for 2020/21 and replaced the complex means test. Instead, this scheme considers whether working age people should pay in the region of 30% to 80% of their Council Tax depending on their income and family circumstances and takes into account funding cuts, Council Tax arrears, Universal Credit and the impact of wider welfare reform changes. As a minimum, all working age people will pay 30% of their Council Tax before they are entitled to support.

The Department for Works and Pensions (DWP) has introduced Universal Credit to replace six existing benefits. Because the amount of Universal Credit customers receive is reviewed each month by the DWP, this affects the income used to work out LCTS entitlement. This means that changes will be made to customers’ council tax accounts every month you pay your Council Tax on a monthly basis, then constant changes to your payment plan may increase the difficulties for you of budgeting on a fixed income and cause confusion. It also makes the scheme more costly to run.

Therefore, the Isle of Wight Council has decided to replace the current working-age scheme with a simplified scheme from 1 April 2020.  To find out more information on the scheme please visit Local Council Tax Support 'Am I Entitled' .

Since 2014/15 the amount of grant received from Government to pay for CTR has been included with the general grant (Revenue Support Grant) we receive.  The amount of this grant has been significantly reduced each year and therefore there is less money available to meet the cost of CTR as well as significantly reduced resources to pay for all council services.

The Isle of Wight Council will be continuing with its Exceptional Hardship Policy, anyone who is experiencing severe hardship can find further information and how to apply by visiting Local Council Tax Support Exceptional Hardship.

Learn more about the Local Council Tax Support scheme and what the qualifying conditions are.

Exceptional Hardship Policy setting out the conditions of the Exceptional Hardship Fund.

Equality Impact Assessment 2020/21

IOW S13A Scheme 2020

Council Tax Banding Information -Visit GOV.UK to find out about your Council Tax Banding Information