What is this consultation about?
Each year Mid Devon District Council must decide whether to change the Council Tax Reduction scheme for working age applicants in its area. (Pension Age applicants see no changes as they are part of the national scheme.)
This year the Council is proposing to implement changes to the working age Council Tax Reduction Scheme to:
• Provide an increased level of support to those households on the lowest incomes
• Provide greater stability to those who are in receipt of support; and
• To ensure all adults within the household are contributing towards the Council Tax charge
What is Council Tax Reduction?
Council Tax Reduction is a discount for Council Tax. The level of discount is based on the income of the household.
The Council can only make changes to the working age scheme, as the Council Tax Reduction scheme for pensioners is prescribed by Government.
Why is a change to the Council Tax Reduction scheme being considered?
Councils are required to review their schemes each year and decide if they want to make any changes. Before any changes can be implemented, they must be subject to public consultation.
Mid Devon District Council is proposing a number of changes to its existing scheme. The Council has a duty to consult and provide you with the opportunity to tell us about your views on the proposed changes to our Council Tax Reduction Scheme.
The Council is consulting on the following changes to its scheme for 2026/27 (more detail on the change proposals is given further in the consultation):
• To increase the level of support for working age applicants and to make changes to the income levels within the 'income- grid' scheme. Both of these changes are designed to provide more support to low-income households (Part 1);
• The scheme will increase the current disabled disregard (Part 2);
• Change the CPI date used to calculate annual increases (Part 3); and
• Introduce a non-dependent deduction for additional adult occupiers within the household (Part 4).
All other parts of the existing scheme will remain unchanged.
In the Mid Devon District Council area, almost 4,000 people currently receive Council Tax Reduction. The gross cost of the scheme is c£4.8m which is spread across the County Council (71.4%), the District Council (9.5%), Fire (4.2%) and Police (11.4%), and 3.5% going to Parish Councils in accordance with the proportion of Council Tax which each organisation levies (which is shown in brackets).
Who will this affect?
Working age households in the Mid Devon District Council area who currently receive or will apply for Council Tax Reduction.
Pension age households will not be affected as Central Government prescribes their scheme.
Are there any alternatives to changing the existing Council Tax Reduction Scheme?
We have considered continuing with the current scheme - this would provide less support for certain households. The Council feels that it is essential low income households are supported as much as possible at this time.
