Council tax benefit controversy

On Sunday, the Observer reported that David Cameron is facing a revolt in his own Oxfordshire “backyard” as local Tories join a national outcry over council tax reforms that they say will cost people on low earnings more than £420 a year from next April. They say that Tory-run West Oxfordshire district council, which covers the prime minister’s Witney constituency, has decided to go it alone and keep the existing system throughout next year, effectively snubbing Cameron’s government.

Cameron’s local Oxford council joins revolt over benefits change

Meanwhile, today’s Mail has a short story stating that council chiefs are being urged to get to grips with council tax benefit as figures revealed £200million a year is being lost to fraud and error. They say that Local Government Secretary Eric Pickles said councils should use new powers over the benefit to tackle the fraud and waste that has plagued the system for years.

Councils lose £200m in tax benefit to fraud and error… that’s £3m for every authority in the country

It would be interesting to share info about what individual councils are doing.  In east Sussex a joint scheme has been devised between councils.  For working age people it features

1) £20 per week maximum benefit (lower than the lowest council tax in some areas)
2) £5 minimum benefit
3) No benefit if savings over £6k
4) Non dependent deductions doubled.

They don’t seem to have thought about the cost of collecting the excess council tax or the effect on low paid workers.

Central Bedfordshire are currently consulting on their proposals for council tax. Details can be found at the following link:

http://www.centralbedfordshire.gov.uk/council-and-democracy/have-your-say/current-online-consultations.aspx

Some of the key proposals from their consulation document are:

Freezing allowances and premiums at current levels
All working age people (unless considered vulnerable) will be required to pay a minimum 25% council tax.
Abolishing second adult rebate
Reducing amount of support offered to people living with non-dependants
Second home owners will pay full council tax
Owners of unoccupied properties to pay full council tax
Owners of empty properties undergoing repair or major structural work to pay full council tax
Mortgagees of repossessed homes to pay full council tax
Owners of long term empty homes to pay full council tax plus 50% extra after the property has been empty for two years

Interesting times ahead I think!

hi

we’re gathering together local authority consultations in a new localising support for council tax section of toolkit -

http://www.rightsnet.org.uk/toolkit/council_tax_support

we’ll be publishing the final schemes once they’re available.

cheers ros

Hi Tony,

In short, council tax is being localised (part of the governement localism agenda) so each LA is going to be responsible for developing and delivering their own council tax scheme. Subsidy in relation to council tax that is paid by central government to LA’s will be reduced by 10% so LA’s are looking at how to save money on council tax benefit and increase revenue from other sources.

Older people and vulnerable people will be protected from any cuts to council tax benefit so that means any savings have to be made from everyone else.

I know several local authorities are looking at removing and reducing discounts and exemptions as a way of increasing revenue. I’ve seen something from one LA saying that they will remove the Class A and Class C exemptions completely which is along the lines of what Central Bedfordshire are doing.

Hope this helps with some background.Anything futher, give me a shout

John

And of course, council tax benefit is the one means-tested benefit that won’t be part of either Universal Credit or Pension Credit, it’ll be out there on it’s own and will continue to be administed by LA’s as opposed to the DWP

Tony
That Council looks to be combining 2 seperate pending changes.

The CTB replacement (localised Council Tax Support) and the Technical reforms to Council Tax. The latter giving Councils local flexibility on what periods and level of exemptions or discount are awarded in respect of empty properties and 2nd homes. 

There is a danger in linking the two things if you ask me but I know that some Councils are looking to fund any protection built in to Council Tax support through the technical reforms.

Hi Ros,

North Norfolk are now consulting so another one for you to add to the list! Details of the consultation can be found at http://www.northnorfolk.org/counciltax.asp

Cheers

John

hi john

thanks for that. i’ve added the north norfolk consultation to tookit.

cheers ros

The Bradford consultation link isn’t to the Bradford CT Support scheme, they haven’t launched that yet. The link here is to their consultation on the technical changes to Council Tax for empty properties and second homes.

Must say that this is a very useful resource - thank you

hi julian

thanks very much for pointing that out, i’ve removed the bradford link.

cheers ros

Kensington and Chelsea and Hammersmith and Fulham London boroughs are both proposing to keep the current model and absorb the costs at least for the first year.  After that, who knows?!

I noticed the RBKC consultation already on the toolkit, but here is the one for LBHF (sorry don’t know how to do neat links).

http://www.lbhf.gov.uk/Directory/Advice_and_Benefits/Council_tax/Who_has_to_pay/174433_Council_Tax_Support_Scheme.asp

thanks alleycat - i’ve added the LBHF consultation to toolkit -

cheers ros

Another one for you Ros,

North Tyneside’s consultation can be found at:

http://www.northtyneside.gov.uk/browse.shtml?p_subjectCategory=1519 

Cheers

John

thanks again john, i’ve added the north tyneside consultation to tookit -

cheers ros

http://www.cravendc.gov.uk/counciltaxconsultation

The only proposal that comes close to making up the shortfall is restricting maximum eligibility across the board, to 65 or 70% of the current level.