Babergh cabinet today approved a one hundred per cent maximum council tax reduction to combat the cost-of-living crisis and administration associated with the current scheme.

The year-long change would see an increase in the maximum council tax reduction for people who get legacy benefits or universal credit – which is currently 95 per cent.

Legacy benefits are the separate benefits incorporated into one through the universal credit system.

The council tax reduction scheme will need to be approved by full council before being implemented from April.

Cllr David Busby, Babergh cabinet member for finance, said the consultation suggested 'we are going in the right direction' with the proposal.

One cabinet member added: "This is almost a no-brainer. It costs us far too much to administer the current scheme.

"This will save officer time and the stress of residents who get council tax letters about small amounts, which they often struggle to pay."

Almost 60 per cent of council tax reduction recipients get universal credit (UC). The amount they are given through UC fluctuates each month, and council tax reduction awards have to be reassessed accordingly.

Rather than reviewing eligibility for the full council tax cut on a monthly basis, the approved scheme involves an automated system based on department for work and pensions (DWP) data.

As the automated system could lead people just-about-eligible for the reduction to fall through the cracks, the scheme also adds protection that should mean no one eligible for the reduction becomes financially worse off.

A six-week consultation of 53 people from Babergh and its neighbouring authority last year found 79 per cent in favour of amending the scheme to offer a full reduction; 91 per cent agreed with simplifying the scheme to reduce administrative costs.

The consultation included people liable for council tax and advisers for debt problems, such as Citizens Advice. The proportion in receipt of council tax reduction was 28 per cent.

Members of the council raised concerns about the fact that the full council tax reduction responds to problems that are likely to continue for longer than its one-year duration.

Officers explained the council tax reduction scheme would be reviewed next year and a full reduction could go to consultation again if councillors make this decision.