Thurrock Council plans to continue tax support despite financial woes

A council that has declared it is in financial distress is planning to keep its £8m-a-year council tax support scheme for relatively poor people.

In December, Thurrock Council in Essex issued a section 114 notice which means it cannot balance its budget and is effectively bankrupt.

The authority has a deficit of £469m.

A report said the council wanted to keep its own scheme as the alternative government options would cost an additional £1m each year.

Cabinet papers recommended the Conservative-run authority agreed to maintain the existing support scheme, which covers up to 75% of what a household would have to pay in council tax.

It currently supports 9,209 of the poorest and most vulnerable households in Thurrock, which costs the council £8.19m annually.

About a third of claimants are of pension age and 970 are of working age and employed.

The scheme is open to people on Jobseeker's Allowance or Employment and Support Allowance and Pension Credit. It also provides support to those with certain disabilities, and care leavers.

A report to cabinet members said: "It is recognised that the council needs to identify savings to close the budget gap.

"However, when considering the level of Local Council Tax Support for the forthcoming year, this needs to be balanced against the comparative cost of the current scheme, the economic climate, and the ability of claimants to accommodate reduced support."

The cabinet will meet to make its decision on 11 January.

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