A plan to cut council tax completely for the poorest households in Babergh and Mid Suffolk will be put to the public later this month.

Babergh and Mid Suffolk district council cabinets voted to start a period of consultation on a temporary axing of council tax for working-age people.

Consultation is expected to run between October 13 and November 24, and people liable for council tax will be able to comment, as well as bodies supporting people with debt problems and landlords.

A decision is expected by February 20, 2023, at the latest – ready for the new scheme to be implemented in April 2023.

Conservative councillor John Whitehead, the cabinet member for finance at Mid Suffolk, said: “I must confess I support the principle of the view that all but the very poorest pensioner should make some contribution towards our vital public services, albeit very modest.

“However, the operation of this current council tax scheme leads to administrative costs that outweigh the money gained from people paying five per cent council tax.

“It is complicated by the need to have monthly reviews as the incomes of people receiving universal credit fluctuate.

“Changed circumstances prompt a reassessment, and a new council tax bill and payment programme. A new instalment plan defers payment and, just before the first is due, universal credit may again be recalculated – meaning the process starts again.

“This causes confusion, and involves officer time, printing costs and postage costs.

“The small amount of payment is also difficult to get from those unable or unwilling to pay. The recovery process itself can lead to costs higher than the amount gained.

“This change is logical. Given the additional financial pressure everyone is experiencing with inflation, it is also timely.”

The scheme approved for consultation was the one recommended by officers, out of four possible options. It includes a maximum possible reduction of 100pc for people who get legacy benefits or universal credit, with measures to prevent people on universal credit from falling through the cracks.

Legacy benefits are the separate benefits, including jobseeker’s allowance and housing benefit, incorporated into one through the universal credit system that started in 2013.