Bradford Council will set up a hardship fund to help the most vulnerable households if the proposed council tax rise of 9.99% is given the go ahead by councillors next week.
A £1.2M hardship fund will be established to ease the impact of the rise for those of working age on low incomes. Eligible households will get a one-off £30 award credited to the council tax account.
To receive this support, households must be in receipt of Council Tax Reduction and be of working age as of March 31, 2025, for existing claimants. The funding is sufficient to cover all existing claimants.
New claimants of working age who apply for Council Tax Reduction between April 1, 2025, and April 1, 2026, will also be eligible for the one-off payment, until the funding is exhausted.
The Hardship scheme supports those of working age only as they are subject to the locally determined Council Tax Reduction Scheme which caps maximum support at 70% of a Band A charge. Council Tax Reduction for pensioners is governed by national legislation which already allows for a maximum of 100% support toward Council Tax bills for those on the lowest incomes so these pensioners should not see any increase.
No application is necessary to access the new hardship grant support. The award will be automatically applied to eligible households and will be reflected on their council tax bill, providing immediate relief for those on the lowest incomes.
Councillor Susan Hinchcliffe, Leader of Bradford Council, said:
“The hardship fund will provide crucial extra support for working age residents on low income who are already entitled to Council Tax Reduction by lowering their council tax liability for 2025/6 by a further £30.
“People in receipt of Council Tax Relief are the most vulnerable to changes in income and we want to ease the burden on them of a council tax rise.
“No council takes the decision to raise council tax lightly as we know this will add to the cost-of-living for residents, but we are facing huge costs and demand for services, particularly social care for children and adults, and we have a responsibility to make sure the council’s finances balance. It’s cold comfort I know but, even with this increase, the council tax Bradford Council charges will still be below average nationally.”
The government has given Bradford Council permission to increase council tax by 9.99% for 2025/26. A formal decision on the increase will be taken when the council meets next week to decide its budget for the coming year.
In addition to the £1.2m hardship fund for the coming year, the council will also put £500,000 of extra funding a year for 2025/26 and 2026/27 to support welfare benefit and debt advice services across the district to help residents ensure they are claiming all the benefits and support they are entitled to.
