Council Tax benefit to be axed
The Government's Welfare Reform Act 2012 (WRA) abolishes council tax benefit from April 2013. Councils can operate their own replacement scheme, but will get 10% less cash with which to do it. In Wiltshire the impact of the changes will mean a shortfall of £3.5million compared with current budgets. The Government says councils should make cuts to other services to maintain benefits at current levels, but allows other options including cutting benefits. Wiltshire Council has decided to do this.
The new "local council tax support scheme" must be in place by 31st January 2013 in time for the 2013/14 Council Tax bills.
WC is obliged to consult other precepting authorities, publish a draft scheme, and consult service users and organisations.
The final scheme will be rubber-stamped by Full Council in November, and WC is about to begin the consultation. This will include parish and town councils, Police and Fire Authorities, residents (via a website voting tool), and groups such as Wiltshire Money and Tenant Forums.
Four options are being put forward:
- Fully fund the shortfall in funding through a 1.5% increase in council tax.
- Meet the shortfall from cuts to other services.
- Reduce maximum eligible council tax support to 90% of the Council Tax chargeable limit to all those of working age except those in receipt of disability premium and war widows/ disablement pension, with reduction of certain exemptions and discounts.
- Reduce maximum eligible council tax support to 80% of the Council Tax chargeable limit to all those of working age except those in receipt of disability premium and war widows/ disablement pension, with reduction of certain exemptions and discounts.
The leader of the Council has confirmed that option 4 is the one WC will implement.
Further information can be found at:
DWP: - http://www.dwp.gov.uk/policy/welfare-reform
DCLG:-http://www.communities.gov.uk/localgovernment/localgovernmentfinance/counciltax/counciltaxsupport/