Monopoly houses

Cabinet vote on council tax benefit changes next week

As previewed by Retired Hack last month, Cabinet members will next week be asked to consider the preferred option and consultation process for dealing with changes to council tax benefit next year.

As readers may remember, not only will be Government be reducing the overall ‘pot’ for council tax benefit by 10 per cent (apart from pensioners, vulnerable adults and single occupants who will be protected under the new scheme), but they will also require councils to localise Council Tax benefit.

Some of the highlights
As you can see from the paper (embedded below for your convenience), it’s a long and complex issue. Our thanks go to Retired Hack for picking out some of the highlights:

  • Maximum rebate reduced from 100 per cent to 80 per cent (so everyone except protected categories would have to pay at least 20 per cent, ie £200+ a year
  • Maximum rebate limited to “Band D” value (so anyone living in a higher band house would get less than 80 per cent rebate).
  • Abolition of second-home rebate (now 10 per cent).
  • Abolition of second adult rebate (for properties shared by non-spouses where one is on a low income).
  • Curtailment of exemptions for empty properties.
  • Some fairly impenetrable adjustments to sliding scales.
  • A 10-week consultation will begin on Sept 24, with a decision in January.

The recommendation
Cllr Pugh’s recommendation (see below) cover many items, including the public consultation on plans.

The rejected options include leaving benefits as they are and absorbing the cost by general council tax increase or cutting services.

That CABINET considers:

  • the options set out in the report and their potential impact as set out in Appendices 1, 2 and 3 to this report;
  • the Stage 1 Equalities Impact Assessment set out in Appendix 4 to this report;
  • the proposed consultation process set out in this report; the council tax reforms set out in Appendix 6 to this report;
  • the draft Local Scheme set out in Appendix 5 to this report;
  • the recommended preferred option set out at paragraph 107;
  • any comments from the Overview and Scrutiny Committee.

And recommends to Council: (a) the overall consultation arrangements; (b) the preferred option that will form the basis of the consultation.

That COUNCIL considers:

  • the options set out in the report and their potential impact as set out in Appendices 1, 2 and 3 to this report; the Stage 1 Equalities Impact Assessment set out in Appendix 4 to this report;
  • the proposed consultation process set out in the this report;
  • the council Tax reforms set out in Appendix 6 to this report;
  • the draft Local Scheme set out in Appendix 5 to this report;
  • the recommendations of the Cabinet. And agree: (a) the overall consultation arrangements; (b) the preferred option that will form the basis of the consultation.


The eight appendices can be found embedded below for your convenience


Image: Tax Brackets under CC BY 2.0