Consultation on proposed changes to Council Tax support

Our Council Tax support scheme helps people on low income by reducing the amount of Council Tax they have to pay.

The Government abolished Council Tax Benefit on 1 April 2013 and South Cambridgeshire District Council replaced it with a Localised Council Tax support Scheme that took into account the reduced Government funding.

Universal Credit (UC) full service will be introduced in whole of South Cambridgeshire by 17 October 2018. It will have a significant impact on residents and the administration of both Housing Benefit and Council Tax support.

The Council bases the amount of Council Tax support it gives to those who claim it on their weekly income. If you receive Council Tax support and the amount of money you get from wages, tax benefits, UC or other benefits changes, we alter the amount of Council Tax support you get. At present we do this every time it happens. As UC is calculated using tax records, keeping our current arrangement in place would mean that we would alter the amount of Council Tax support each time UC is changed. It is expected that the number of times we alter the amount of Council Tax support would increase. We anticipate that it would be on average between four and 32 times a year.

We are looking to change the scheme so that residents who receive Council Tax support can be more certain as to the amount of Council Tax they need to pay and reduce the number of times we alter the amount of Council Tax support..

Council Tax support is a local scheme but we do not have the freedom to change all the rules. Central Government set the scheme for pension age applicants and so those of pension age will not be affected by any changes made.

South Cambridgeshire District council is considering three options to change its Localised Council Tax support Scheme. However, for each option there are rules which would be the same. These are: It will be based on your weekly income, with most income taken into account and most outgoings ignored. It will provide support for those who work so they are better off than if they had relied on public funds. The other policies that would remain the same are:

It will protect those of pension age.

It will allow the maximum help we give through Council Tax support to be 100% of the Council Tax liability for those who in the Council’s protected group (Those who receive Disability Living Allowance, Personal Independence payments, Carers and those who receive the support component of Employment support and lone parents who have children under 5)

It will limit the maximum help we give through Council Tax support to 91.5%. to those not in the Council’s protected group

It will allow for a maximum period of one month backdating of Localised Council Tax support for those applicants who delayed their claim due to a good reason.

A claim for Council support will be required
Claimants will still need to notify the council of changes of circumstances and income.

The date of Claim for Universal Credit Claims would be the Monday following the first contact with the Department for Work and Pensions, providing a claim for Council Tax support is received within four weeks

It will disregard the Housing Element of Universal Credit as income in the same way that Housing B

Option 1: The current scheme- (Existing Arrangements)

This is based on the weekly income of a claimant, so small changes in wages, Tax Credits or from Universal Credit alter the amount of Council Tax support received.

We currently adjust the amount of Council Tax support when a claimant’s income or circumstances change. It is likely that the majority of residents who claim Council Tax support would have amendments. We estimate for 2019/20 the average number of amendments to be between four and 32 times per year. Those in receipt of Universal Credit and working are likely to have their claim amended on a monthly basis

This option would see an increase in the number of times Council Tax support is amended and is likely to provide less certainty to those who claim on their Council Tax monthly payments. A new Council Tax bill would be sent each time a change of Council Tax support is amended.

Option 2: A fixed period localised Council Tax support scheme

This would base the Council Tax support on the amount of weekly income received at the start of the claim, or the start of the financial year. The amount of Council Tax support would only be amended if there was a change of £20 or more per week to income during the fixed period. Additions or reduction in household members would result in an amendment being needed.

We would review Council Tax support Claims on a three, six or 12 monthly basis depending on circumstances and the amount of support awarded would be amended. It would be likely that the majority of residents’ Council Tax support claims would be reviewed on a six monthly basis. A review period for three months is likely for claims where the income includes self employment (new business) and its likely that income received can change. Six monthly reviews may include cases where income includes earnings and 12 Monthly reviews would be for cases such as that long term sick or established self employment where income is less likely to change.

This option would reduce the number of times the amount of your Council Tax support is changed and is likely to provide more certainty about the amount you pay monthly for Council Tax.

Option 3: Income bands discount localised Council Tax support scheme

This would be based on ‘Income Bands’ that would be wide enough so small changes in wages, Tax Credits or from Universal Credit would not alter the amount of Council Tax support you receive.

We would adjust the amount of support awarded when larger changes occurred which would alter the discount band assigned.

This option would reduce the number of times the amount of Council Tax support is amended. It is likely to provide more certainty about the amount you pay monthly for Council Tax.

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Question Title

* 1. How should South Cambridgeshire change the Council Tax support for working age people?

Continue with existing scheme (Option 1)

A fixed period localised Council Tax support scheme (Option 2)

Income bands discount localised Council Tax support scheme (Option 3)

If you have any further comments or alternative options or suggestions to make on the Council Tax support scheme please use the space below to register them.