Disregard Child Benefit as an Income
Background
With effect from 2013 each billing authority was required to design and implement its own scheme for working age residents on low incomes, whilst accommodating a 10% reduction in government funding
Proposed Change
In 2013 Shropshire Council took the decision to remove the child benefit income disregard. This change was detrimental to low-income families with children as it meant that for a lot of families, they were suddenly paying an increased amount towards their council tax liability due to receiving an income which is paid to assist in supporting their child's needs
Shropshire Council is now proposing to change its scheme for 2027 onwards, to disregard child benefit as an income in its calculation for council tax support. This change will benefit low-income families with children as it will result in a reduced council tax liability as the income used in the calculation will be lower. This will allow them to have more finances to support their household. We see this as a very positive change for our Shropshire residents by helping those who are more financially vulnerable.
The estimated cost of this change is £750k to £800k per year.
Decision
The final decision on this proposal is due to be made at full council on the 10th of December
This consultation will run for six weeks from the 10th of September to the 22nd of October
