This report explains the recommended approach to the funding changes as a result of the abolition of the council tax benefit scheme and the introduction of the council tax reduction scheme and the recommended funding allocation to parish councils.

The Chief Financial Officer asked Cabinet to recommend to Council that the estimated council tax support scheme funding of £289k is passed onto parishes in 2015/16 as was done in 2014/15.

Since council tax benefit was abolished and replaced with the local council tax support scheme the allocated funding from central government has been included in the general revenue grant. For 2014/15 this was estimated to be £289k for parish and town councils.

Herefordshire Council has previously passed this funding onto the parish and town councils. If this was not done they would have to increase their precept by, on average 10%, or reduce their spending.

Figures were given showing the percentage differences for all parishes in the county based on the numbers of people claiming local council tax support in that parish.