Anger over plans to cut £3.4m council tax benefits for Bristol’s poorest families

Huge cuts to council tax benefits for Bristol’s poorest families are back on the table despite two successful campaigns to scrap them. The city council has proposed slashing £3.4million from the Council Tax Reduction Scheme (CTRS) from April 2026.

The plan, to be considered by the cross-party finance sub-committee on Thursday, January 16, as part of the annual budget-setting process, has sparked anger from campaigners and opposition councillors. It would mean that instead of being exempt from paying any of the bill, the city’s worst-off households would be required to stump up at least 20 per cent.

For band B homes, the most common council tax band, an expected five per cent rise in the charges from April 2025 would mean £1,979.28 a year, with every family having to contribute a minimum of £396 instead of zero. Community union ACORN forced a U-turn from Bristol City Council’s then-Labour leaders over similar proposals in 2017 and 2023 following huge campaigns that included disrupting public meetings and threatening legal action.

The scheme currently costs £44.5million a year, of which £30.4million helps out working-age adults and £14.1million is for the elderly, who are protected from the cuts by law. ACORN Bristol branch secretary Wesley Bear said: “Potential cuts to the lifeline benefit Council Tax Reduction are an appalling decision by Bristol City Council.

“This benefit ensures the lowest-income families in our city can keep a roof over their heads and avoid the devastating consequences of bailiff action. Slashing this essential support is not just morally wrong – it’s economically reckless. It will inevitably cost the council more in homelessness provisions and debt collection efforts.”

He said he met previously with council leader Cllr Tony Dyer (Green, Southville), deputy leader Cllr Heather Mack (Green, Lockleaze) and homes & housing delivery policy committee chair Cllr Barry Parsons (Green, Easton ) “all of whom looked me in the eye and committed not only to protecting this benefit but also to including ACORN in discussions about any future CTR changes”.

Mr Bear said: “Their promise was clear – ACORN would play a central role in ensuring Bristolians’ needs came first. Let me be clear, ACORN has defended CTR before – in 2017 and again in 2023.

“Our success has kept £240million in benefits for low-income families who desperately need it during this cost-of-living crisis. If necessary, we will step up to defend it once more.”

Bristol Labour group leader Cllr Tom Renhard said: “The previous Labour administration protected the CTRS in full for eight years, throughout Tory austerity. The Greens promised to protect this on page one of their manifesto commitments, yet they have chosen to cut it at the first opportunity. Their promises aren’t worth the paper they’re written on.”

He said another proposed cut in the budget of £350,000 from the Local Crisis Prevention Fund, which supports people in financial crisis, would also hit the worst off.

Cllr Renhard (Labour, Horfield) said: “This fund provides household goods and emergency payments, covering essential household items and vouchers to assist those in need with food, fuel and clothing, including school uniform assistance. The fund receives more applications than funding available.

“The council needs to be sustainable, but these are savings on paper, not reality. People qualify for the CTRS because they are some of Bristol’s poorest households.

“Telling people with no money to pay more tax will only result in more debt for the worst-off, not close the budget gap.” A report to the finance sub-committee said: “Unlike other local authorities, Bristol City Council hasn’t changed its [CTRS] since 2013.

“Reviewing and considering changes to the scheme could lead to a more affordable CTR scheme which continues to provide support to residents unable to afford their council tax.” It said any changes would be subject to public consultation in 2025/26 and approval from full council.

The report said the council faced a £42.2million shortfall next year rising to £110.3million in 2029/30 if it made no savings, primarily because of ballooning demand for social care and inflationary costs. Cllr Dyer said in a blog on the authority’s website that the council faced bankruptcy if it did not close the funding gap over the next five years.

He said: “There is no doubt that it means difficult choices, more taxes and charges, and we recognise that the money we raise does not go as far as it once did. We don’t like that any more than local taxpayers do, but it is the reality we must contend with.

“We need to take a bigger, bolder, and more politically courageous approach to our budget. Too often the savings haven’t been made, the can has been kicked down the road, and we have overspent our budget.

“This is a very tough time for Bristol, and we recognise the difficulties being faced by many households and communities.” Next week’s sub-committee will consider all the budget proposals and make recommendations to the strategy and resources policy committee ahead of the decision by full council in February.