Glossary of terms used
Band B Property Cap – This limits support to the Council Tax liability of a Band B property. This means residents in higher band properties receive no additional help beyond that level.
Capital Limit – The maximum amount of savings or assets a resident can have to be eligible for CTS. Bury’s scheme sets this at £8000.
Consultation – A formal process where residents are invited to provide feedback on proposed changes before they are implemented.
Council Tax Support (CTS) – A local scheme that helps low-income households reduce the amount of Council Tax they need to pay. It replaced Council Tax Benefit in 2013.
Income Bands – These are levels of income that decide what level of support is granted. For example a single resident who's income is between £1 and £500 per month would receive a 60% reduction to their Council Tax bill.
Local Government Finance Act 2012 – Legislation requiring councils to consult the public before making changes to CTS schemes.
Means Tested – A method of assessing eligibility for support based on income, savings and household circumstances. Bury’s current scheme is fully means tested.
Minimum Payment – The portion of Council Tax that all CTS recipients must pay. Bury’s scheme requires a minimum payment of 20%.
Non - Dependant Deduction – This is an adult who lives in the property but is not the Council Tax payer or payers. For example another adult relative.
Protected Groups – Households that receive additional support or exemptions.
Universal Credit – A government benefit for people on low income or out of work. Under the proposed scheme, Universal Credit will not be included in the income assessment.
Working Age CTS Scheme – The part of the CTS scheme that applies to residents of working age. Local authorities can design this scheme, unlike the Pension Age scheme which is set by Central Government.
Summary of the proposals
Bury Council has reviewed its Working Age Council Tax Support (CTS) scheme to ensure it remains fair, efficient, and sustainable. The current means-tested model is administratively complex and less generous for some working families.
The scheme for Pension Age residents is prescribed by central government and cannot be amended by local authorities.
Council Tax Support provides critical financial support to residents on a low income and works by reducing the amount of Council Tax the resident needs to pay. The level of support is based on the resident’s financial and household circumstances.
£7,590,145 is projected to be discounted over 2025/26 in order to provide support to working age residents through Council Tax Support.
Council Tax is a critical funding stream for the authority in determining budgets for the delivery of council services to residents and is growing in its proportion of the council’s overall funding.
Bury, like most other councils, is under significant financial pressure and so when designing the Council Tax Support scheme, it is important to closely consider the financial impact this may have. For example, a more generous scheme may mean it is more or too expensive to sustain, whilst a far less generous scheme has the potential to create hardship for low income families or create greater losses to Council Tax collection than the scheme actually offsets with support.
Bury’s current scheme is fully means tested, meaning even very small changes in income or benefits can lead to a change in support and a new Council Tax bill being issued. This has become a significant problem for councils’ operating this scheme type since the advent of Universal Credit
Over the year the council has handled:
- over 100,000 Department for Work and Pensions updates
- approximately 17,000 CTS related written contacts or work received from residents
- approximately 13,000 CTS related calls to our Contact Centre
No option for change in a Council Tax Support Scheme can be made or considered without adherence to The Local Government Finance Act 2012, which sets out that billing authorities must consult with the public on any draft scheme for Council Tax Support.
Principles of the proposal
- Provides greater support to families
- Retains protections for key groups
- Is easier for residents to understand
- More certainty for residents over what needs to be paid through the year
- Assists with the collection of Council Tax
- Reduces the administrative costs regarding changes to entitlement
- Reduces the administrative costs created by resident contact.
Bury’s current CTS scheme for working age residents
- Fully means tested with a £1.00 change in any income leading to a £0.20 adjustment to entitlement
- A 20% minimum payment for all recipients
- An £8,000 upper capital limit
- Support is ‘capped’ at the value of a Band B property for Council Tax purposes.
- A sliding scale of deductions for other adults living in the property (non-dependant deduction)
- Protections in place for the following households:
- Disabled
- Carers
- Lone Parents with a child under 5
- Those in receipt of certain Armed Forces benefits and payments
Bury’s proposed scheme for public consultation
- Only earned income included in assessment - this means that Universal Credit will not be taken into account
- Broader income ‘bands’ used for assessment
- Keeps the 20% minimum payment
- Keeps the £8,000 capital limit
- Introduces a £40.00 per month flat rate non dependant deduction
- Keeps the same protections in place for the following households:
- Disabled
- Carers
- Lone Parents with a child under 5
- Those in receipt of certain Armed Forces benefits and payments
Modelling of the proposed scheme shows this increases average awards, benefits 88% of claimants, reduces administrative burden whilst costing only £65,000 more than the current scheme.
We are now asking residents and key resident advocacy groups to engage with us and let us know what they think about the proposed scheme. The results of the consultation will then be collated with the final scheme then being presented to Full Council in January 2026 for elected members to decide whether to implement.
Frequently Asked Questions
Why is Bury Council reviewing its Council Tax Support scheme?
The current scheme, introduced in 2017, is complex, can be less generous for working families, and administratively costly. The review aims to simplify the system, improve fairness and efficiency, and ensure it remains financially sustainable.
What is Council Tax Support (CTS)?
CTS helps low-income households by reducing the amount of Council Tax they need to pay. The level of support is based on the resident's financial circumstances. It replaced Council Tax Benefit in 2013 and is administered locally by each council.
What changes are being proposed?
The Council is proposing a new scheme, which:
- Only has earned income included in assessment - this means that Universal Credit will not be taken into account
- Has broader income ‘bands’ used for assessment
- Keeps the 20% minimum payment
- Keeps the £8,000 capital limit
- Introduces a £40.00 per month flat rate non dependant deduction
- Keeps the same protections in place for the following households:
- Disabled
- Carers
- Lone Parents with a child under 5
- Those in receipt of certain Armed Forces benefits and payments
Will I lose support under the new scheme?
Under the proposal 88% of current residents would receive the same or increased support. The scheme is designed to protect vulnerable groups and improve fairness. However, the proposal will mean some loss in support for some of the highest earning households within the current scheme.
How will the new scheme affect families with children?
The proposed scheme is designed to protect our most vulnerable groups. It increases support for families with children and better aligns with the Council’s commitment to reducing child poverty.
Is the Council allowed to change the scheme?
Yes, but only after public consultation on the proposal for the new scheme.
When will the changes take effect?
If approved, the new scheme would be implemented from April 2026.
How can I have my say?
The Council launched a public consultation on 6 November 2025 where residents can review the proposed scheme and provide feedback. Details will be published on the Council’s website and shared through local channels.
Will households who receive protection under the current scheme continue to receive this under the new scheme?
Yes. The proposed scheme maintains current protections for:
- disabled adults and children,
- designated carers
- lone parents with children under 5
- households in receipt of armed forces benefits and compensations.
What happens next?
The final scheme must be approved by elected members at a Full Council meeting.