Council Tax Support Changes Cut Payments for Berwick's Low-Income Households

The Council Tax Support Scheme Amendment Bill, passed by the state legislature on 3 July 2026, updates income thresholds and taper rates used to calculate relief for council tax bills. The changes apply to households in Berwick and other Northumberland wards where the local authority administers the scheme. Residents receiving support will see their assessed contributions recalculated based on the new formula.

Why the bill reached the floor now

The legislation follows the 2025 local government finance settlement, which required authorities to review support schemes after central funding adjustments. Berwick’s share of the county’s council tax collection stands at approximately 8 per cent of the total base. Policy analysts note that the bill responds to updated Office for National Statistics data on household incomes reported in the March 2026 quarterly release.

Local residents on fixed incomes or in receipt of Universal Credit will have their weekly council tax liability reassessed under the revised taper. For example, a single pensioner household previously entitled to 75 per cent relief may now qualify for 68 per cent, increasing the amount paid directly to the council by roughly the equivalent of one week’s standard charge. Working households with children in receipt of child tax credits face similar recalculations if their earnings sit near the new upper threshold.

Budget figures and next steps

The fiscal note attached to the bill projects an annual saving of £1.4 million across the county, with Berwick expected to account for £112,000 of that total according to the county council’s July 2026 budget monitoring report. The legislation states that existing awards will remain in place until the annual review cycle begins in October 2026, after which new calculations apply. The county council will issue revised bills by 31 January 2027, with residents able to request a review through the existing online portal or at the Berwick customer service centre.

Implementation guidance issued by the Department for Levelling Up, Housing and Communities requires authorities to notify all current recipients in writing by 15 September 2026. Local advocates note that the council plans two drop-in sessions at Berwick Library in late August to explain the revised calculations. The government says the policy will align support levels with current benefit uprating figures published in the April 2026 Welfare Benefits Uprating Order.