Other options considered
Several options have been considered. These are not ruled out entirely, and you will be asked for your views in the consultation questionnaire. At this stage we do not believe they are practical or affordable to implement for the reasons explained below.
| Working Age - Non-Passported – Other | Working Age - Non-Passported – Working | Working Age - Passported - Other | Total | |
|---|---|---|---|---|
| Number of households | 3,605 | 2,435 | 426 | 6,466 |
| Option 1 - Current CTS expenditure | £4,720,839 | £1,121,942 | £557,811 | £6,400,592 |
| Option 2 - CTS expenditure | £4,435,069 | £1,007,436 | £528,026 | £5,970,531 |
| Option 2 - reduction in CTS expenditure | £285,770 | £114,506 | £29,785 | £430,061 |
| Percentage reduction | 6% | 10% | 5% | 7% |
| Option 3 - CTS expenditure | £4,139,394 | £896,176 | £492,824 | £5,528,394 |
| Option 3 - reduction in CTS expenditure | £581,445 | £225,766 | £64,987 | £872,198 |
| Percentage reduction | 12.3% | 20% | 11.7% | 13.6% |
Options Considered in Detail
Option 1 – Balance the Council’s budget gap in other ways.
This option is not recommended.
The Council is already in a difficult financial situation. Reports like the Medium-Term Financial Strategy (MTFS) and regular budget updates to Cabinet have made clear how serious the problem is. In July 2025, the MTFS described the Council’s finances as acute.
Currently, the Council is receiving Exceptional Financial Support. According to the 2025/26 budget, the total support through Capitalisation Directions (CDs) is expected to reach £348 million by 2027/28, and this money will have to be paid back. Paying the interest on this debt will cost about £6 million each year.
Recent reports show the budget gap is growing, which is putting pressure on the Council’s already limited reserves. The Council doesn’t have enough savings to cover the expected shortfall in the 2026/27 budget and is already thinking about cutting some services to help balance the budget.
Option 2 – Reduce maximum CTS support to 75% for non-working and by 10% for working households.
This option is not recommended.
Cutting support this way would save £430,062 in total CTS spending. However, as noted in option 1, the Council’s finances are in a very serious state. Large cuts to spending across services and increases in income are already needed. Therefore, this amount of savings is not enough to close the budget gap.
Option 3 – Reduce maximum CTS support to 70% for non-working and by 20% for working households.
This option is recommended for consultation.
Cutting support this way would save £872,198 in total CTS spending. This approach provides more savings, helping the Council manage its finances responsibly, while still allowing residents to have their say on the proposed changes.
Mitigations Considered
We recognise that these changes may be difficult for some households. Potential support for those most in need may include:
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CTS Hardship Fund – £350,000 to provide extra support for households experiencing extreme financial difficulty.
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This includes £175,000 from CTS savings in 2025/26 and £175,000 from the Household Support Fund.
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Financial and welfare guidance – detailed support on benefits, debt management and budgeting to help households maximise their income and manage spending.