A NEW way to help people on low incomes in Dudley pay their council tax has been welcomed by councillors.

The local authority is set to change its council tax reduction (CTR) scheme so residents claiming Universal Credit don’t receive numerous bills which cause confusion and worry.

Members of the Corporate Scrutiny Committee meeting on Thursday were told the changes would make the present system simpler and easier to operate.

Iain Newman, Director of Finance and Legal Services, said at present the council is notified of 1,000 changes in circumstances every month.

He said: “As people’s circumstances can change on a regular basis, it means we have to frequently issue updated bills, which can be confusing for residents.

“This new approach, if approved, will allow us to award council tax reduction in a more streamlined way and reduce the admin burden for both parties.”

The council tax for a band D home in the borough is £1,541 a year and over 25,000 households receive an average cut of £13.31 per week.

So far this year, the council has awarded £18.4m to claimants.

Anyone on a low income can apply for CTR and people of working age will have to pay at least 23 per cent of their normal bill. 

In future the local authority wants to treat any award of Universal Credit as an automatic application for CTR and only issue revised council tax bills if  a claimant’s income goes up or down by more than £3 a week. 

Currently, all households have to make a separate application for a cut in the amount they pay.

Councillors heard this can lead to people not applying because they don’t realise they are entitled to reduced tax, while those who do can see their bills fluctuate throughout the year.

A public consultation on the changes will run until January 12.