Solihull Council Approves Changes to Council Tax Support Scheme
Councillors in Solihull have engaged in a heated debate over the fairness of the council tax support scheme, culminating in the approval of changes at a full council meeting on February 26. This decision follows the earlier agreement to increase council tax by 4.99 percent for residents, adding to the financial pressures faced by households.
Background and Financial Pressures
The scheme, originally revamped last year by the Conservative-run Solihull Council, transitioned from a means-tested system to a simplified 'income banded' model, commonly used by other authorities. Since its introduction in April 2025, the scheme has seen an increase of 532 cases, costing the council an additional £390,000. By the end of the year, the total cost reached £14.7 million, with a deficit of £811,000, prompting further adjustments.
To address these financial strains, proposed changes include ignoring all unearned income from universal credit in assessments, increasing income bands for couples with one child by £10, and reducing bands by £5 for various claimant groups, such as single claimants and couples. Single claimants with two or more children will see a reduction of £15 in their income bands.
Council Leader's Perspective
Council leader Karen Grinsell defended the changes, stating that the move to a 'cleaner and more accessible' system has led to increased case numbers, indicating the scheme's effectiveness. However, she acknowledged the financial pressures it creates. Grinsell emphasized that the revised scheme followed full public consultation, with 271 responses agreeing to the proposals.
According to current modelling, 97 percent of claimants will experience no change or an increase in entitlement. Those facing reductions can apply to the council's discretionary reduction fund for additional support. Grinsell assured that the council will continue to take a holistic approach to assist residents in financial hardship.
Opposition Concerns and Criticism
Leader of the Green group, Councillor Max McLoughlin, raised significant concerns, highlighting that 578 claimants will see their support reduced. He pointed out that 82 percent of those negatively affected are women, and 16 percent are couples with two or more children. Additionally, 64 households will face a council tax increase of over £10 per week.
'Every single one of these people is a recipient in some form of benefit, so how is this justifiable in a cost of living crisis?' McLoughlin questioned, underscoring the impact on vulnerable groups.
In response, Grinsell noted that affected individuals will receive letters with information on accessing hardship payments. She also highlighted that Solihull's scheme remains one of the most generous in the West Midlands region, balancing criticism from some, including Reform UK group leader Councillor Michael Gough, who argued the scheme was too generous.
Vote Outcome and Future Review
After extensive debate, the changes were approved by a majority vote. The council has committed to keeping the scheme under review to ensure it meets the needs of residents while managing financial constraints. This decision reflects ongoing efforts to navigate economic challenges and support the community amidst rising costs.
