Solihull Council Tax Support Scheme Changes Approved Amid Heated Debate
Senior councillors in Solihull have engaged in a spirited debate over the generosity of the local council tax support scheme, culminating in the approval of proposed changes. The Conservative-run Solihull Council revamped the scheme last year, transitioning from a means-tested system to a simplified 'income banded' approach, which is widely adopted by other authorities across the region.
Financial Pressures and Proposed Adjustments
Since the scheme's implementation in April 2025, there has been a notable increase of 532 cases by December 2025, resulting in an additional cost of approximately £390,000 for the council. By the end of the year, the total scheme cost reached £14.7 million, with a deficit of £811,000. In response to these financial pressures, further modifications were proposed, including ignoring all unearned income from universal credit during assessments and adjusting income bands for various claimant categories.
Specific changes involved increasing income bands for couples with one child by £10, while reducing bands by £5 for single claimants, couples, single claimants with one child, and couples with two or more children. Additionally, income bands for single claimants with two or more children were reduced by £15. Joanne Robinson, the council's head of income and awards, explained that these reductions aim to ensure those on standard universal credit amounts continue to receive maximum support while mitigating rising costs.
Public Consultation and Government Updates
The proposed changes underwent a public consultation, garnering 271 responses, with the majority in agreement. Following the consultation launch, the government announced in the Autumn Budget that universal credit standard rates would increase by 6.2 percent. This adjustment necessitated a £15 increase for couples with one child, rather than the initially proposed £10, to maintain maximum support levels for those on standard universal credit amounts.
Councillor Perspectives and Political Clash
During the cabinet meeting, Councillor Bob Sleigh, the cabinet member for resources, highlighted that 93 percent of claimants would experience no change or an increase in entitlement. He emphasized that those facing losses could apply for exceptional hardship, stating, "The scheme still remains fair." However, Green Party councillor Max McLoughlin criticized the administration, arguing that balancing the budget on the backs of benefit recipients is regressive, disproportionately affecting low-income individuals.
Deputy leader Ian Courts defended the scheme, noting, "From looking at the data, by and large ours is more generous than others." He challenged Councillor McLoughlin to identify funding sources for a more generous alternative. In contrast, Reform UK councillor Michael Gough contended that the scheme is overly generous, suggesting it advantages non-working individuals by discounting income, unlike working people who receive no such benefits.
Approval and Next Steps
Despite the heated exchange, senior councillors agreed to recommend the changes to the full council, with the meeting held on February 12. The decision reflects ongoing efforts to manage council finances while addressing the needs of vulnerable residents, amidst broader discussions on social equity and fiscal responsibility in local governance.
