A MOVE to wipe out thousands of council tax bills in Middlesbrough has been given the green light.

Middlesbrough Council will pay £155 to all working age recipients of its council tax reduction scheme using an emergency Covid-19 hardship fund from the Government.

It will mean about 5,800 residents who have a balance of £155 or less on bills will have nothing to pay in rates in 2020/21.

Middlesbrough Mayor Andy Preston approved the grant’s sign off in a two minute meeting this morning.

Mr Preston said: “I think it’s a good use of the money the government has given us – it’s targeting exactly the right groups. I approve this.”

A total of £2.8m has been given to Middlesbrough to help those on low incomes pay tax bills during the pandemic crisis.

The Government has told authorities to give a minimum of £150 to all residents on council tax support using the emergency fund.

Stockton Council and Redcar and Cleveland Council have both confirmed they were sending out £150 reductions.

But Middlesbrough has opted for an “enhanced” £155 payout – as the cost of pursuing outstanding balances simply wouldn’t be worth it.

The report added: “It is important to ensure residents of Middlesbrough who cannot afford to pay their full council tax are able to receive a reduction which in some instances will mean they have nothing to pay.”

The paper showed the authority had received 13,317 working age council tax reduction claims so far – with finance chief estimating a total cost of about £2.5m based on the number of claims in 2019.

Neighbouring Stockton Council has received £2.44m from the government and it began sending out revised bills to 12,000 people at the weekend.

Council leader Bob Cook added: “This additional discount of up to £150 will also be applied to people who become eligible for working age council tax support during the rest of the 2020/21 financial year.

“It is applied to council tax bills automatically and there is no need for people to apply.”

Meanwhile, Redcar and Cleveland Council has been granted £1.85m for more than 8,500 people expected to be eligible for the support.

Leaders have urged those who’ve seen a “significant reduction” in their household income from the pandemic to seek help on the council’s website.