More than 5,000 low-income households in Bedford Borough could be asked to start paying council tax for the first time under proposals going before councillors next week.
The council’s Executive, meeting on Monday, 29 September, will be asked to launch a public consultation on plans to cut the maximum level of support available through the Local Council Tax Reduction Scheme for working-age residents.
Currently, people living in homes in council tax Bands A to D can receive up to 100 per cent support, meaning 5,419 working-age households pay no council tax at all, according to council figures.
Under the proposals, the maximum discount would be capped at 80 per cent for Bands A to D and 65.6 per cent for Bands E to H. That means every working-age household receiving support would be required to contribute something towards their bill.
The changes are being considered as the council faces a forecast shortfall of £32.5 million in 2026/27 and nearly £59 million over the next four years.
A review by the Chartered Institute of Public Finance and Accountancy (CIPFA) concluded that Bedford’s scheme is more generous than neighbouring authorities such as Luton and Milton Keynes, which already require households to pay at least 20 per cent of their liability.
Read: Report says Bedford Borough Council must take urgent action to avoid bankruptcy
Figures in the report show there are currently around 7,200 working-age households receiving support, 91 per cent of them in Bands A to C.
Based on current average council tax levels, weekly payments (with no single person discount) under the new scheme would typically range from approximately £6 to £9 in Bands A to D, rising to more than £25.85 to £31.02 for the two highest bands.
Income from Child Benefit, fostering allowance, maintenance payments and disability-related benefits would continue to be disregarded. But where another adult in the household earns more than £300 a week, no discount would be applied.
If approved, the consultation will run this autumn, with a final decision due at Full Council before March 2026.
By John Guinn
Local Democracy Reporter
