Council Tax Hardship Fund Allocation by local authorities
The £500 million Hardship Fund allows councils to give extra support to help people affected by Coronavirus. Councils are expected to use this welcome funding to reduce the council tax bills of working-age people who are already receiving council tax support, by £150 in 2020/21.
Because councils have different council tax support schemes they will have different amounts of discretionary support leftover. Those with more generous support will have more discretionary hardship funds available to help support vulnerable households.
For example, local authorities that give council tax support based on 100% of council tax liability need only to use a small proportion of their Hardship Fund to give an additional discount to people in receipt of council tax support. These councils will have more money left over from their Hardship Fund than councils with schemes based on less than 100% of council tax liability.
Policy in Practice analysed the allocation of the Hardship Fund under the assumption that councils initially allocate funding in the manner set out by MHCLG. The table below shows the amount of funds each individual council across the country will be able to retain for their own discretionary allocation.