Local council tax support scheme consultation

Local council tax support (LCTS) scheme 2026 to 2027

This consultation opens on 8 September 2025 and closes 3 November 2025.

Please take time to read the background information provided here to help with your responses.

We will consider what you tell us both carefully and fully.

The new scheme will start on 1 April 2026.

Note that the decisions arising out of this consultation may affect more than just the Local Council Tax Support Scheme. Any additional costs may need to be funded by reductions to Council Services.

We will consider the impact of the scheme each year and may consult again if we think more changes need to be made.

Thank you for your assistance.

More information on the LCTS current scheme

What is being considered?

We are putting forward the proposed scheme for consultation.

The Proposed Scheme

To maintain all aspects of the current scheme (including the current maximum level of support and the Exceptional Hardship Policy).

Exceptional Hardship Fund

All LCTS claimants continue to be able to apply for additional support on a case-by-case basis where they experience exceptional hardship via the ‘Exceptional Hardship Fund’.

This fund is made available to claimants each financial year regardless of any changes which are made to the LCTS scheme.

Have your say

The online questionnaire seeks your views and suggestions to help us design the scheme for 2026/27.

We would like the consultation to be as wide as possible and invite responses from all interested parties, including LCTS claimants and potential claimants, council taxpayers, other residents, businesses, town, parish and community councils, the voluntary sector and advocates and representative groups.

We will also be consulting with the police and crime commissioner who is a statutory consultee and with other support agencies about the proposed options.

How to respond

Step 1 - Read the documents

Step 2 - fill in the questionnaire

If you cannot use the online form, PDF versions of the questionnaire are available on request. You can post paper copies to Revenues and Benefits, PO Box 238, Newport, Isle of Wight PO30 9FP.


Case studies

The case studies show how the proposed scheme and the alternatives might affect various households.

These changes are irrespective of any general council tax increases.

Miss. Blue lives alone in a Band B property and gets Universal Credit of £25.19 per week once her housing costs are deducted under the scheme. She also has earnings of £93.39 per week and a private pension of £10.19 per week.

She currently gets an annual reduction of £893.98 (65 per cent) through LCTS. This means she pays £481.37 per year for her council tax. Under the proposed scheme, she would continue to receive the same amount of support as she currently gets (subject to any general council tax increases).

Mr and Mrs Brown are a couple with one child and live in a Band B property.

Mrs Brown has earnings of £170.67 per week.

Mr Brown receives Employment Support Allowance (contribution-based) of £90.50 per week and Universal Credit of £179.78 per week. He also receives Personal Independence Payments of £184.30 per week, Child Benefit of £25.60 per week and Employment Support Allowance Support Component of £47.70 per week, all of which are disregarded incomes under the scheme.

They currently get an annual reduction of £1,256.55 (65 per cent) through LCTS. This means they pay £676.61 per year for their council tax. Under the proposed scheme, they would continue to receive the same amount of support as they currently get (subject to any general council tax increases).

Mr and Mrs Black are a couple living in a Band C property with no children.

Mrs Black receives Income Support which means they are in the passported scheme and automatically receive 75 per cent annual reduction. 

They currently get an annual discount of £1,565.41 through LCTS. This means they pay £521.81 per year for their council tax.

Under the current scheme if either Mr. or Mrs Black were to start work and their Income Support stopped, they would receive the extended reduction for a four-week period based on the 75 per cent reduction before the earnings are taken into account.

Under the proposed scheme, they would continue to receive the same amount of support as they currently get (subject to any general council tax increases).

Next steps

The consultation closes on Monday 3 November 2025.

This is because of the timescales involved and the legal requirement that the council adopts any amended scheme by February 2026 at the latest if it is to take effect from 1 April 2026.

We will listen carefully to what residents tell us. The consultation results will be considered alongside other evidence and information at the Full Council meeting to make the final decision on the 2026/27 scheme.

Following the decision, the full results will be available on the council’s website.

The new scheme will start on 1 April 2026.

The council will consider the impact of the scheme annually and consult again if it thinks further changes need to be made.

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