Council approves changes to Local Council Tax Support scheme
Tuesday, 3 March 2026
Central Bedfordshire Council has approved changes to its Local Council Tax Support (LCTS) scheme for working-age residents.
At a meeting of Full Council on Friday (27 February 2026), councillors agreed to a new scheme which continues to support those on the lowest incomes and does not disadvantage those looking to get into work.
The Local Council Tax Support scheme provides financial help to residents on low incomes by reducing the amount of Council Tax they need to pay. Households are split into four discount bands, and the level of support they receive is based on the household’s income and circumstances, such as whether they have children or caring responsibilities.
Households with the lowest incomes receive the largest discount, while others receive a smaller reduction and pay the remaining amount themselves. The Local Council Tax Support scheme currently provides £14 million in support each year to working-age residents.
Under the changes approved by councillors, the level of discount available in Bands 1, 2 and 3 will be reduced, and households will be asked to contribute more towards their Council Tax from 1 April 2026.
However, councillors agreed to maintain the current 25 per cent discount for households in Band 4, rather than reducing it to 15 per cent as originally proposed.
We carried out a six-week public consultation between November 2025 and January 2026, as part of which all households receiving working age Council Tax support under the scheme were written to directly. More than 800 responses were received, and councillors carefully considered the feedback before making their final decision.
Councillor John Baker, Executive Member for Finance, said:
We recognise that this support is vital for many residents, particularly at a time when many households continue to face cost-of-living pressures. Therefore, this is not a decision we have taken lightly. Having reflected on the public feedback, councillors agreed changes to the scheme that reduce costs while ensuring the scheme continues to support residents into the future. The changes approved also mean that Central Bedfordshire's scheme is aligned with some of our neighbouring councils. The Council is facing significant financial challenges due to rising demand and costs in adult social care and children’s services, and more recently a change in government funding leaving the Council with a £17 million shortfall. The changes to the Local Council Tax Support scheme will free-up £2.9 million per year, which will help pay for other vital services.