FAQs

The CTS scheme helps residents on low incomes to pay their Council Tax. The level of discount is based on the income and size of the household.

Under the current scheme a working-age household liable for Council Tax could get up to 63% of the bill paid discounted through the scheme, dependent upon their circumstances.

Currently, the amount of support a household can receive is based on an ‘income banded discount scheme'.

The scheme operates by offering a discount in the payable Council Tax based on the household income and size.

Households are divided into income bands. Each band gives a % discount off the Council Tax bill. This is the CTS award.

Households with lower incomes are placed in lower bands and receive a higher discount from their Council Tax bill.

The current CTS scheme supports 16,350 residents and costs the Council £15.4 million per year.

Following a recent High Court judgment involving Three Rivers District Council, councils have had to review how Transitional Protection is treated within local Council Tax Support schemes.

The Council is proposing to retain the current income banded discount scheme with some changes.

The Council’s current scheme treats the Transitional Protection element as income when working out Council Tax Support. This means some residents may receive less Council Tax Support than they would if that element was ignored.

The Council is proposing that, from April 2027, the Transitional Protection element of Universal Credit should be disregarded when calculating Council Tax Support. This means it would not be counted as income in the calculation.

It would provide additional support to affected low-income households, including some disabled residents and residents with health conditions who moved from legacy benefits to Universal Credit.

Apart from this change, the Council is not proposing to make any other changes to the level of support provided through the scheme. The current discount levels would remain the same.

The changes to the CTS Scheme will affect working age (aged 16 to 66) households in Barking & Dagenham who will get CTS from 01 April 2027.

This will affect 11,881 households currently in receipt of CTS and any new applications for CTS from April 2027.

Pension age (aged 66 or over) households will not see any change as the scheme to support this group is set out by Central Government.

If you are of working age and currently receiving CTS or make an application for CTS after the 01 April 2027 you may experience changes to your award if you are in receipt of a transitional protection element of Universal Credit.