Welsh councils to receive extra £2.8m to replace lost council tax income

Local authorities across Wales are set to receive an extra £2.8 million to replace income lost from an increase in residents entitled to a reduction in their council tax.

A significant number of people have either had their pay cut or been made redundant as a result of the coronavirus pandemic.

It has led to a rise in demand on the Welsh Government’s Council Tax Reduction Scheme, (CTRS) which provides support to low income households.

The additional funding will support council by restoring the reduced income they’ve experienced due to the increase in the number of households entitled to CTRS since lockdown began.

Finance Minister Rebecca Evans said: “Whilst the coronavirus outbreak is affecting everyone, we know that it is having the most significant financial impact on some of the most vulnerable people in our society.

“The funding I am announcing today will provide local authorities with the financial reassurances they need to continue to support those who need it most through our Council Tax Reduction Scheme.

“I would encourage anyone who thinks they may be eligible for help with their council tax bills to contact their council for advice.”

The Welsh Government said it would continues to work with the Welsh Local Government Association and councils to understand the long term effects of the increased demand on the scheme and to assess the extent of any decline in council tax collection rates.