Telford council tax benefit cut 'will save authority £235,000'
Asking residents in Telford and Wrekin on low incomes to pay more tax will save the local authority £235,000, a leading councillor has claimed.
Councillor Lee Carter made the claim after members of Telford & Wrekin Council agreed to increase the proportion of the bill paid by people who receive tax support by four per cent.
The authority also agreed to continue its £30,000 council tax hardship fund, which has awarded help to the most financially vulnerable people over the past three years.
But a £2 million education services grant to the authority will be lost when the scheme is scrapped in September, councillors were told.
Councillors voted to increase the amount of tax paid by people on low incomes at a full meeting of the authority on Thursday night as part of changes to its council tax support scheme.
Working age residents who receive support will pay 25 per cent of their council tax bill during the 2017/18 financial year. Currently they pay 21 per cent.
Councillors were told the change was in line with national policies.
Councillor Carter, the authority's cabinet member for finance, partnerships and commercial services, told the meeting: "Currently all working age people on a low income pay 21 per cent.
"The scheme has been operated successful for four or five years. The rise to 25 per cent will save £235,000 a year."
Councillor Robert Sloane, who represents Hadley and Leegomery, said: "I can't say I welcome the report, but I do understand it.
"What is important is we maintain this linkage with the national scheme."
