Council Tax Support: A benefit determined by postcode & not need Citizens Advice Says....

Calls for a fundamental overhaul of the system of Council Tax Support after Citizens Advice sees a huge influx of Debt Relief Orders being submitted, with Council Tax Debts being the chief debt burden of family households.

5th May 2025

Council Tax Support (CTS) is meant to ease the burden of council tax for low-income households, but it’s failing too many people according to Citizens Advice. Since replacing the more uniform Council Tax Benefit (CTB) back in 2013, Local Council Tax Support (LCTS) has become a postcode lottery, with support varying wildly depending on where you live, with the current system found to be broken, inconsistent, and urgently needing an overhaul to deliver fairness as well as protecting those most in need.

A Postcode Lottery, Not a Safety Net

Durham County Council is the only local council in the region that offers its lowest income householders 100% discount on their household council tax bill.

When LCTS was localised by the government back in 2013, each local council in England was given the freedom to design its own Council Tax Support scheme.

The result? A patchwork of support that leaves identical households with vastly different outcomes based solely on their postcode. Most councils now offer less generous schemes than the old Council Tax Benefit, often requiring working-age residents to pay a minimum portion of their council tax, regardless of how little they earn. Some even cap support based on the council tax band of a person’s home, penalising those who have no control over where they live.

This inconsistency is said to be having real consequences. Since localisation, council tax debt has more than doubled. With Citizens Advice, reportedly seeing this firsthand: with nearly half of their debt clients approaching them for assistance recieving Council Tax Support but are still trapped in council tax arrears. For those already struggling, this system isn’t a lifeline—it’s a weight dragging them further down.

A System at Odds with Universal Credit

Local Council Tax Support also clashes with Universal Credit (UC), creating a double penalty for those trying to improve their circumstances. Both benefits are said to taper off as a claimants earnings rise, but their combined effect can actually slash income at a punishing rate, discouraging people from working more hours or seeking better-paid jobs. To cope with UC’s complexities, some local councils such as Hartlepool Borough Council have now introduced income-banded Council Tax Support schemes, but these often oversimplify household circumstances, leading to unfair reductions in support for the people who are claiming a council tax reduction...

Millions said to be Missing Out

Compounding the problem, is the claim that millions of eligible people aren’t even accessing Council Tax Support Benefits. Digital exclusion, a lack of awareness, and an overly complex application process creates barriers that leaves vulnerable households without the support they’re entitled to. The Citizens Advice claims this isn’t just a design flaw—it’s a failure to reach those who need help the most.

Time for a Major Overhaul

The Citizens Advice say that Council Tax Support now needs a complete rethink in order to restore fairness and consistency. At its core, reforms should ensure that those on the lowest incomes receive a 100% discount, eliminating minimum payments that trap people into a cycle of debt with their local council, a move which has seen scores of Hartlepool Locals, many of whom are vulnerable or caring for vulnerable people being hauled before the courts due to non payment. Scrapping band caps would also prevent penalising people for living in higher-band properties they can’t afford to leave. Also smaller changes such as automating CTS applications or integrating them with Universal Credit, could even reduce the administrative burdens on local councils, ensuring more people get the help they’re owed without costly system-wide changes.

Hartlepool's Labour MP keeps chirping about 'A Fairer Future for Hartlepool', Here's his starting point !

Previous Labour MP's have admitted that LCTS fails local residents. However few have been vocal on it being changed !

Hartlepool Borough Council Exposed Editor James Barker, who's campaigned for the abolition of Local Council Tax Support since 2013 said :

"Council Tax Support should be a reliable safety net, not a postcode lottery determined by where you live".

"The current system’s inconsistencies, inefficiencies, and inequities are clearly failing low-income households, pushing them ever deeper into debt and uncertainty, yet with targeted reforms, such as incorporating Council Tax Support into Universal Credit—we can rebuild a system that prioritises need over postcode, finally delivering fairness and security to those who need it most. However after previously raising this with both the former Labour MP Mike Hill & Jill Mortimer, the previous Conservative MP for Hartlepool, the spotlights now on Mr Brash to carry the torch & make the issue known to parliament & end this postcode lottery once & for all !"