Issue details

Localised Council Tax Support Scheme

At the Spending Review 2010 the government announced that it would localise support for council tax benefit from 2013/14 reducing expenditure by 10% and saving the government £500m a year.  On 17 February 2011 the government published the Welfare Reform Bill, containing provisions for the abolition of council tax benefit from April 2013 and paving the way for new localised schemes.  Since February 2012 Torbay has worked as part of a Devon wide group to develop schemes on a cost neutral basis, reflecting each Local Authorities demographic community.

Decision type: Key

Reason Key: High level of public interest;

Decision status: Recommendations Approved

Wards affected: (All Wards);

Decision due: 6 Dec 2012 by Council

Lead member: Councillor Alan Tyerman, Cabinet Member for Housing and Finance alan.tyerman@torbay.gov.uk

Lead director: Charles Uzzell

Contact: Paul Looby, Executive Head of Finance Email: paul.looby@torbay.gov.uk.

Consultation process

Meetings, questionnaires etc.

Consultees

Tax payers - Not in receipt of Council Tax Support
Pensioners on Council Tax Support
Working age on Council Tax Support
Other interested parties e.g. Landlords and third parties such as CAB, Devon Wide Compact and Community voluntary Sector and Brixham Town Council

Reason for inclusion in Forward Plan: The government's localisation of support for council tax is taking place within a wider programme of Welfare Reform. The intention of the changes being to help move people back into work as well as making significant savings on the welfare reform bill.

Key Risks: A localised council tax support scheme needs to be in place by the 31 January 2013. Failure to do so will result in an automatic default scheme becoming Torbay Council's Support scheme from April 2013, less 10% funding reduction of approximately £1.6 million that the Council would need to meet from its own resources. Working Age Customers claiming local council tax support from April 2013 may have difficulties meeting their new or additional council tax liabilities. The increase in financial burden places additional pressures on the Corporate Debt Recovery department. Cumulative effects of the wider welfare reforms could see increases in child poverty, anti social behaviour and homelessness as people face reductions in their overall incomes and increases in household costs/ reductions in benefit and support entitlements. Rising case load would increase Corporate financial pressures

If you want to make representations contact:: Linda Owen, telephone: (01803) 207572, email: linda.owen@torbay.gov.uk, address Torbay Council, Town Hall, Castle Circus, Torquay, TQ1 3DR

Agenda items