Around 40,000 low income households won’t have to pay as much council tax from April.
Despite difficult financial times for Kirklees Council, its Cabinet altered its Council Tax Support (CTS) scheme, raising it by 9% to support residents.
Clr Graham Turner, Cabinet member for Resources, said: “It’s our responsibility to protect the most vulnerable and poorest members of our society and that’s what we’re doing.”
The means-tested scheme helps working-age people on low incomes pay their council tax bill, with reductions depending on household income.
Previously, low income residents had to pay at least 29% of their overall council tax bill, but now they’ll only have to pay at least 20%.
It means a single person on Job Seekers Allowance of £72.40 per week living in a Band A property will pay 20% (£191.80) a year rather than the 29% (£278.10) currently.
And while no council tax increase has been decided by councillors, a 1.95% rise is being considered, which applies only to the council element of the tax bill, with the fire, police and parish precepts yet to be announced.
Kirklees Council analysts say the changes to the CTS scheme will be cost-neutral as it will mean more households will be able to pay their bill instead of going into arrears and the authority incurring debt.
Around 40,148 households in the borough receive CTS - down from 42,592 last year.
Every working-age person has to pay something towards their council tax bill, apart from lone parents with children under the age of five; households qualifying for a severe disability premium; those with a war or war widows pension and low-income pensioners.
Despite the reduction, more vulnerable and working-age employed people need CTS.
During the budget consultation the proposal had marginal opposition with 31% in favour, 44% against and 25% undecided.
Clr Turner said: “The figures show it won’t cost the council any more, but it will help our residents a little bit more and it is the right thing to do.
“The vote was split, but the undecided can’t be strongly against it, so this has favourable support.”