Council Tax Support Scheme

We have now adopted a local Council Tax Support Scheme for the 2013/14 financial year.

Contents

• Council Tax Benefit changes
• What does the change mean?
• Consultation - have your say
• How will this affect different households?
• Further information and advice.

Council Tax Benefit changes 

From 1st April 2013, a local Council Tax Support Scheme is replacing Council Tax Benefit.  As part of its overall changes to welfare benefit, the Government has asked all councils in the country to replace it with their own 'Council Tax Support Scheme'. This must be in place from 1st April 2013.

The Government has also said that it will no longer fully fund the new scheme and plans to reduce the money it gives to councils. In Derby, this means an overall reduction of approximately £2.6 million. This means that we are going to have to make some very difficult decisions about who we can help with a discount towards their Council Tax.

What does the change mean?

Every council will have its own local scheme to help its residents on low incomes with their Council Tax payments.

The Government has outlined that the new scheme should:

• not change the amount of help that low income pensioners currently receive.
• consider the needs of:
  • families
  • households with disabled people
  • people who receive war pensions as a result of bereavement or disablement.
• encourage people to work and not discourage them from working.

Everyone of working age currently entitled to Council Tax Benefit will be potentially affected by the changes. Currently there are more than 15,000 residents in the city who receive these benefits.

Consultation - have your say

Consultations took place for eight weeks from 5th September 2012. We also talked to local community groups and key stakeholders across Derbyshire about the proposed changes.

Councillor Russell, Cabinet Member for Business, Finance and Democracy said:

"The Government has forced the Council into a thankless position where we have no choice but to make changes we would not have proposed ourselves. We must make the best of a bad situation and we feel these proposals strike the right balance.

"But nothing is decided and nothing will be finalised until you have had your say. Neither the Council nor you have chosen to be in this position. These changes will affect all of us and that’s why this consultation will play a vital role in determining what happens."

How will this affect different households?

These examples are based on 2012/13 figures. The amounts shown are estimated and some figures have been rounded...

Example 1: For a single person...

• of working age
• receiving Income Based Job Seeker's Allowance of £71.00 a week
• living alone in a band A property in Derby.

Under the Council Tax Support Scheme they would get £10.42 help a week or £543.25 a year towards their Council Tax bill. This is a decrease of £2.60 in support each week or £135.81 a year.

This means they would have to pay £2.60 a week or £135.81 a year towards their Council Tax bill

Example 2: For a lone/single parent family...

• where the parent is of working age
• with one child
• receiving Income Support, Child Tax Credits and Child Benefit - a total household income of £128.83 a week
• living in a band C property in Derby.

Although they live in a band C property, support through the scheme would be capped at band B.

Under the Council Tax Support Scheme they would get 80% of band B level support.  They would get £16.21 help a week or £845.05 a year towards their Council Tax bill.

This is a decrease of £1.16 in support each week or £60.37 a year.

This means they would have to pay £1.16 a week or £60.37 a year towards their Council Tax bill.

*Single people pay less because they qualify for a discount of 25% off their Council Tax bill. This is because they live alone – the single person’s discount isn’t changing.

Example 3: For a two parent family...

• with both parents of working age
• with four children
• receiving Income Support, Child Tax Credits and Child Benefit, a total household income of £303.02 a week
• living in a band D property in Derby.

Although they live in a band D property, support through the scheme would be capped at band B.  Under the proposed Council Tax Support Scheme they would get 80% of band B level support.  They would get £16.21 support a week or £845.05 a year towards their Council Tax.  This is a decrease of £9.84 in support each week or £513.07 a year.

This means they would have to pay £9.84 a week or £513.07 a year towards their Council Tax bill.

 Example 4: Household with a disabled person...

• with a couple of working age
• receiving Income Support and Disability Living Allowance, a total household income of £209.45 a week
• living in a band A property in Derby.

Under the Council Tax Support Scheme they would get £13.89 support a week or £724.33 a year  towards their Council Tax bill.  This is a decrease of £3.47 in support each week or £181.08 a year.

This means they would have to pay £3.47 a week or £181.08 a year towards their Council Tax bill.

Further information and advice

Find out more about the Council Tax Support Scheme with our frequently asked questions or download our .

For advice on budgeting, welfare support, benefits and debt, visit our Money advice page.

If you have any questions please do not hesitate to contact us for more information or advice.

Downloads

• Welfare Reform booklet - Big Changes to Council Tax Benefit (pdf, 2,414kb)
• Welfare Reform booklet - Proposed Council Tax Support Scheme (pdf, 196kb)
• Derby City Council's Council Tax Support Scheme 2013/14 (pdf, 231kb)
• Council Tax leaflet 2013/14 - How your money is spent (pdf, 628kb)
• Council Tax Support up-rating information 2013-14 (pdf, 228kb)
• Housing Benefit, Council Tax Benefit and Free School Meals claim form (pdf, 687kb)