The latest session of the Independent Revenues & Benefits Discussion Group, held on 9 June 2025, offered an invaluable insight into the current state of Council Tax Reduction (CTR) schemes across the country. This week, we were fortunate to be joined by Karen Holmes from entitledto, who delivered an excellent and highly informative presentation on her newly published report reviewing CTR schemes for 2025/26.
Karen began by setting out the context of the review, noting the increasing financial pressures many authorities face, particularly in London. While there was initial concern that this would lead to widespread cuts in support, the data revealed a more nuanced picture. Though some authorities have made reductions, many others have sought to maintain or even enhance support within the constraints of their budgets. Karen highlighted that support levels are increasingly shaped by each authority’s financial resilience, creating what she aptly described as a “postcode lottery”.
Among the key findings presented:
- Increased Activity: 21% of local authorities have made changes to their schemes this year, a notable rise compared to previous years.
- Shifts Towards Banded Schemes: There are now 126 banded schemes, accounting for over 40% of all schemes nationally.
- Diverging Approaches: While 28 authorities increased minimum payments, 18 authorities chose to reduce them, with minimum payments as high as 60% now being observed in some areas.
- Geographical Variations: London boroughs featured prominently among those reducing support, whereas authorities in the East and West Midlands were more likely to have enhanced their schemes.
- Administrative Considerations: Many authorities are adopting banded schemes or introducing income tolerances to simplify administration and reduce costly re-billing triggered by Universal Credit fluctuations.
Following Karen’s presentation, a lively discussion ensued. Darren Smith and Julie Smethurst both emphasised how banded schemes have helped improve collection rates and administrative efficiency, with Julie explaining how Tameside had successfully transitioned while maintaining support levels for 90% of claimants. Robert Fox highlighted the often overlooked software costs associated with implementing scheme changes, while Gareth Morgan underscored the complexity and inconsistency in how schemes are described and applied by different councils.
The conversation also explored the future challenges posed by local government reorganisation. Karen referenced recent mergers such as North Yorkshire, where authorities with diverse schemes have had to negotiate significant harmonisation issues. Malcolm Gardner noted the importance of using any lead-in period prior to reorganisation to proactively align schemes, avoiding last-minute disruptions.
The group also took time to examine the emerging activities of Reform UK’s Department of Government Efficiency (DOGE). Malcolm led a discussion on the implications of Reform UK’s audits, data access challenges, and concerns around legality and procurement rules. Paul Howarth and Gareth Morgan offered cautionary reflections on the practicalities and political motivations behind these initiatives.
In closing, Malcolm extended his thanks and appreciation to Karen for her superb analysis and for sharing the entitledto report, which provided the group with a comprehensive overview of CTR developments and challenges.
Next week, the group will reconvene for a special session dedicated to the upcoming Spending Review. With many authorities anxiously awaiting its implications for local government finances, it promises to be another timely and important discussion.
The Independent Revenues & Benefits Discussion Group continues to provide a vital forum for expert analysis, shared learning, and open debate at a time of significant policy flux.
For more information or to join future sessions, contact Malcolm Gardner at Visionary Network. info@visionarynetwork.co.uk
The recording can be found at Recording Link
Files to be downloaded
Please note that the handout contains additional slides covering other items of interest in the news and job adverts, which are provided in partnership with Business Smart Solutions (https://www.businesssmartsolutions.co.uk/).