The options – Council Tax Support scheme consultation 2025
Consultation closes: Wednesday, 7 January 2026
Consultation opened: Wednesday, 26 November 2025
We're consulting on the following 2 options.
Option 1: Do nothing
With this option, we would retain the current bands and discounts but would need to find other ways to reduce costs by £1.1 million, probably more. The government has announced the Fairer Funding Review which is likely to significantly reduce the funding that we receive for 2026/27, so further changes to services are highly likely.
We've already reduced staffing, cut services and started charging for some services to reduce costs. It is getting harder and harder to meet the financial challenges without adjusting Local Council Tax Support.
Option 2: Reducing maximum award percentages and discount bands
This option would reduce the amount of Council Tax Support for all working-age households, including those who currently receive 100% support and do not pay any Council Tax. The proposed changes only apply to working-age claimants; support for pension-age residents is still set by national rules and is not affected by local schemes.
This would affect around 9,371 households. Everyone in the scheme would receive less support – and therefore pay more, regardless of their current discount level.
Originally, we proposed at its Executive meeting on 7 October, to change the percentages of support and remove the lowest level of discount, band 4. This would have meant 100% support changing to 80% support, 75% support changing to 50% support, 50% support changing to 20% support, and 25% support being removed.
At the Corporate Resources Overview and Scrutiny Committee meeting on Tuesday 4 November, consideration was given to the suggestion that these proposed changes would too greatly reduce the levels of support to people in the lower discount bands who are more likely to be working and on low incomes. Upon reflection, the Executive, not wanting to dis-incentivise work, has considered a new option which changes the proposed percentage levels of discount and reinstates some support for Discount Band 4. An Executive delegated decision notice was published on Monday 10 November 2025 to confirm the proposed change in percentages.
Whilst this lessens the proposed reductions in discount bands 2 to 4 where the majority of working people can be found, it does result in claimants in the highest discount band being asked to pay more (25% of their Council Tax bill). This band includes some working people but is predominantly made up of disabled people, carers and lone parents who are known to experience greater barriers to paid employment.
The following table provides more information relating to recipients of Council Tax Support.
| Working age caseload as of 10 November 2025 is 9,689 | 100% | 75% | 50% | 25% | Total | Total as a percentage of caseload |
|---|---|---|---|---|---|---|
| Households with a disability indicator | 5,563 | 342 | 206 | 86 | 6,197 | 64% |
| Households with a carer indicator | 1,837 | 226 | 107 | 40 | 2,210 | 23% |
| Households with employment indicators | 1,024 | 806 | 869 | 426 | 3,125 | 32% |
| Households with disability & employment indicators | 652 | 248 | 169 | 81 | 1,150 | 12% |
| Households with disability & carer indicators | 1,525 | 176 | 81 | 27 | 1,809 | 19% |
| Households with no indicators (not working, disabled or carers) | 1,193 | 27 | 10 | 1 | 1,231 | 13% |
| Lone parents with at least one child | 2,657 | 541 | 562 | 214 | 3,974 | 41% |
The proposed change could reduce the cost of the scheme by around £3.4 million, based on current Council Tax charges and a snapshot of claimants in October 2025. Our share of this would amount to about £2.9 million, with the remainder shared amongst the other precepting authorities, which include:
- Bedfordshire Fire & Rescue Service
- Bedfordshire Police and Crime Commissioner
- town and parish councils
| Discount | Claimant numbers | Percentage of claims | Single claims | Couple claims | Family with 1 child claims | Family with 2 children claims | Family with 3 children or more claims | Saving |
|---|---|---|---|---|---|---|---|---|
|
Current: 100% Proposed: 75% |
7,288 | 76.4% | 3,448 | 403 | 1,287 | 1,242 | 908 | £2.91 million |
|
Current: 75% Proposed: 55% |
936 | 9.8% | 117 | 73 | 335 | 247 | 164 | £320,000 |
|
Current: 50% Proposed: 40% |
885 | 9.2% | 158 | 40 | 320 | 260 | 107 | £147,000 |
|
Current: 25% Proposed: 15% |
434 | 4.6% | 73 | 18 | 140 | 128 | 75 | £75,000 |
| Totals | 9,543 | 100% | 3,796 | 534 | 2,082 | 1,877 | 1,254 | £3.45 million |
Under this scheme:
- people in Discount Band 1 who previously received a 100% discount and paid no Council Tax will see their discount reduced to 75% and will have to pay 25% of their Council Tax
- people in Discount Band 2 who were previously receiving a 75% discount and paying 25% of their Council Tax will see their discount reduced to 55% and will have to pay 45% of their Council Tax
- people in Discount Band 3 who previously received a 50% discount and paid 50% of their Council Tax will see their discount reduced to 40% and will have to pay 60% of their Council Tax
- people in Discount Band 4 who previously had a discount of 25% and paid 75% of their Council Tax will see their discount reduced to 15% and will have to pay 85% of their Council Tax
If option 2 is approved, the tables below set out how much people would be required to pay annually or monthly according to the revised level of discount they would be entitled to, the number of people in the household and the Council Tax band of their household.
This is based on the current Council Tax charges for 2025/26 which are anticipated to increase from April 2026, which is when the changes would take effect if approved.
The impact of option 2 across Council Tax bands
Proposed 75% discount for a household of 2 adults or more based on the average Council Tax charges for 2025/26
If you currently receive a 100% discount, you will move to a 75% discount and will pay 25% of your Council Tax.
Please note: the payment amounts below are based on current Council Tax charges, but these are likely to change each April. These numbers are examples only and so don’t represent the 2026/27 charge.
| Council Tax payments | Band A | Band B | Band C | Band D | Band E | Band F | Band G | Band H |
|---|---|---|---|---|---|---|---|---|
| Average annual charge | £1,596 | £1,862 | £2,128 | £2,394 | £2,926 | £3,458 | £3,990 | £4,788 |
| 25% annual payment (75% discount) | £399 | £466 | £532 | £599 | £732 | £865 | £998 | £1,197 |
| 25% over 12 monthly payments (per month) | £33 | £39 | £44 | £50 | £61 | £72 | £83 | £100 |
Proposed 55% discount for a household of 2 adults or more based on the average Council Tax charges for 2025/26
If you currently receive a 75% discount, you will move to a 55% discount and will pay 45% of your Council Tax.
Please note: the payment amounts below are based on current Council Tax charges, but these are likely to change each April. These numbers are examples only and so don’t represent the 2026/27 charge.
| Council Tax payments | Band A | Band B | Band C | Band D | Band E | Band F | Band G | Band H |
|---|---|---|---|---|---|---|---|---|
| Average annual charge | £1,596 | £1,862 | £2,128 | £2,394 | £2,926 | £3,458 | £3,990 | £4,788 |
| 45% annual payment (55% discount) | £718 | £838 | £958 | £1,077 | £1,317 | £1,556 | £1,796 | £2,155 |
| 45% over 12 monthly payments (per month) | £60 | £70 | £80 | £90 | £110 | £130 | £150 | £180 |
Proposed 40% discount for a household of 2 adults or more based on the average Council Tax charges for 2025/26
If you currently receive a 50% discount, you will move to a 40% discount and pay 60% of your Council Tax.
Please note: the payment amounts below are based on current Council Tax charges, but these are likely to change each April. These numbers are examples only and so don’t represent the 2026/27 charge.
| Council Tax payments | Band A | Band B | Band C | Band D | Band E | Band F | Band G | Band H |
|---|---|---|---|---|---|---|---|---|
| Average annual charge | £1,596 | £1,862 | £2,128 | £2,394 | £2,926 | £3,458 | £3,990 | £4,788 |
| 60% annual payment (40% discount) | £958 | £1,117 | £1,277 | £1,436 | £1,756 | £2,075 | £2,394 | £2,873 |
| 60% over 12 monthly payments (per month) | £80 | £93 | £106 | £120 | £146 | £173 | £200 | £239 |
Proposed 15% discount for a household of 2 adults or more based on the average Council Tax charges for 2025/26
If you currently receive a 25% discount, you will move to a 15% discount and will pay 85% of your Council Tax.
Please note: the payment amounts below are based on current Council Tax charges, but these are likely to change each April. These numbers are examples only and so don’t represent the 2026/27 charge.
| Council Tax payments | Band A | Band B | Band C | Band D | Band E | Band F | Band G | Band H |
|---|---|---|---|---|---|---|---|---|
| Average annual charge | £1,596 | £1,862 | £2,128 | £2,394 | £2,926 | £3,458 | £3,990 | £4,788 |
| 85% annual payment (15% discount) | £1,357 | £1,583 | £1,809 | £2,035 | £2,487 | £2,939 | £3,392 | £4,070 |
| 85% over 12 monthly payments (per month) | £113 | £132 | £151 | £170 | £207 | £245 | £283 | £339 |
Proposed 75% discount for a household of 1 adult receiving a 25% single person discount SPD), based on the average Council Tax charges for 2025/26
If you currently receive a 100% discount, you will move to a 75% discount and will pay 25% of your Council Tax.
Please note: the payment amounts below are based on current Council Tax charges, but these are likely to change each April. These numbers are examples only and so don’t represent the 2026/27 charge.
| Council Tax payments | Band A | Band B | Band C | Band D | Band E | Band F | Band G | Band H |
|---|---|---|---|---|---|---|---|---|
| Average annual charge | £1,596 | £1,862 | £2,128 | £2,394 | £2,926 | £3,458 | £3,990 | £4,788 |
| Average annual charge including 25% single person discount | £1,197 | £1,397 | £1,596 | £1,796 | £2,195 | £2,594 | £2,993 | £3,591 |
| 25% annual payment (75% discount) | £299 | £349 | £399 | £449 | £549 | £648 | £748 | £898 |
| 25% over 12 monthly payments (per month) | £25 | £29 | £33 | £37 | £46 | £54 | £62 | £75 |
Proposed 55% discount for a household of 1 adult receiving a 25% single person discount (SPD), based on the average Council Tax charges for 2025/26
If you currently receive a 75% discount, you will move to a 55% discount and will pay 45% of your Council Tax.
Please note: the payment amounts below are based on current Council Tax charges, but these are likely to change each April. These numbers are examples only and so don’t represent the 2026/27 charge.
| Council Tax payments | Band A | Band B | Band C | Band C | Band E | Band F | Band G | Band H |
|---|---|---|---|---|---|---|---|---|
| Average annual charge | £1,596 | £1,862 | £2,128 | £2,394 | £2,926 | £3,458 | £3,990 | £4,788 |
| Average annual charge including 25% single person discount | £1,197 | £1,397 | £1,596 | £1,796 | £2,195 | £2,594 | £2,993 | £3,591 |
| 45% annual payment (55% discount) | £539 | £628 | £718 | £808 | £988 | £1,167 | £1,347 | £1,616 |
| 45% over 12 monthly payments (per month) | £45 | £52 | £60 | £67 | £82 | £97 | £112 | £135 |
Proposed 40% discount for a household of 1 adult receiving a 25% single person discount (SPD), based on the average Council Tax charges for 2025/26
If you currently receive a 50% discount, you will move to a 40% discount and pay 60% of your Council Tax.
Please note: the payment amounts below are based on current Council Tax charges, but these are likely to change each April. These numbers are examples only and so don’t represent the 2026/27 charge.
| Council Tax payments | Band A | Band B | Band C | Band D | Band E | Band F | Band G | Band H |
|---|---|---|---|---|---|---|---|---|
| Average annual charge | £1,596 | £1,862 | £2,128 | £2,394 | £2,926 | £3,458 | £3,990 | £4,788 |
| Average annual charge including 25% single person discount | £1,197 | £1,397 | £1,596 | £1,796 | £2,195 | £2,594 | £2,993 | £3,591 |
| 60% annual payment (40% discount) | £718 | £838 | £958 | £1,077 | £1,317 | £1,556 | £1,796 | £2,155 |
| 60% over 12 monthly payments (per month) | £60 | £70 | £80 | £90 | £110 | £130 | £150 | £180 |
Proposed 15% discount for a household of 1 adult receiving a 25% single person discount (SPD), based on the average Council Tax charges for 2025/26
If you currently receive a 25% discount, you will move to a 15% discount and will pay 85% of your Council Tax.
Please note: the payment amounts below are based on current Council Tax charges, but these are likely to change each April. These numbers are examples only and so don’t represent the 2026/27 charge.
| Council Tax payments | Band A | Band B | Band C | Band D | Band E | Band F | Band G | Band H |
|---|---|---|---|---|---|---|---|---|
| Average annual charge | £1,596 | £1,862 | £2,128 | £2,394 | £2,926 | £3,458 | £3,990 | £4,788 |
| Average annual charge including 25% single person discount | £1,197 | £1,397 | £1,596 | £1,796 | £2,195 | £2,594 | £2,993 | £3,591 |
| 85% annual payment (15% discount) | £1,017 | £1,187 | £1,357 | £1,526 | £1,865 | £2,204 | £2,544 | £3,052 |
| 85% over 12 monthly payments (per month) | £85 | £99 | £113 | £127 | £155 | £184 | £212 | £254 |
Examples of how this change could affect households (working-age adults) are:
- a single person currently receiving a 100% discount would see their discount reduced to 75% – if they live in a Band B property (the most common band), their annual Council Tax bill would increase from £0 to £349 per year which works out at around £29 per month over 12 monthly installments
- a couple living in a Band B property with a discount reduced from 100% to 75% would see their bill go up from £0 to £466 per year, equivalent to around £39 per month over 12 monthly installments