Issue - meetings

This briefing paper provides Members with the key information, issues and concerns with regard to the Government’s proposal to replace Council Tax Benefit with Council Tax Support.

RESOLVED:       (i)      That the report and the implication of the

Government’s proposal to reduce council tax benefit and localise its administration be noted.

                             (ii)      That a further paper be presented to

Cabinet once the technical details have been provided by the Government (Spring 2012) setting out more detailed proposals and options for delivering a scheme in York.

(iii)     That, when further consideration is given to the issue, account also be taken of the regional view.

REASONS:         (i)      To make Members aware of the financial

impact on customers of the Government’s changes to the Council Tax Benefit scheme.

                             (ii)      To keep Members informed of the more

detailed technical changes to be outlined in the Government’s technical paper due in the Spring of 2012 and the ongoing work to develop local schemes.

Members considered a report that provided key information, issues and concerns with regard to the Government’s proposal to replace Council Tax Benefit with Council Tax Support.  The brief was based on the document “Localising Support for Council Tax in England” issued by the Department for Communities and Local Government on 11 August 2011 and the Government’s response to the outcome of consultation issued in December 2011.

It was noted that when the new system of local support for Council Tax was introduced in April 2013, the amount of subsidy provided to local authorities, including York, would be reduced by 10% relative to current expenditure on Council Tax Benefit, saving around £480 million a year nationally and just over £1m in York.  As pensioners were protected from losing any benefit, the benefit loss to working age customers would be much higher.

The Cabinet Member stated that a further report would be presented to Cabinet when further information became available.  At that point decisions would have to be taken as to how the scheme should be implemented.  Members stated that it would also be important to take account of regional views on its implementation.

RESOLVED:       (i)      That the report and the implication of the

Government’s proposal to reduce council tax benefit and localise its administration be noted.

                             (ii)      That a further paper be presented to

Cabinet once the technical details have been provided by the Government (Spring 2012) setting out more detailed proposals and options for delivering a scheme in York.

(iii)     That, when further consideration is given to the issue, account also be taken of the regional view.

REASONS:         (i)      To make Members aware of the financial

impact on customers of the Government’s changes to the Council Tax Benefit scheme.

                             (ii)      To keep Members informed of the more

detailed technical changes to be outlined in the Government’s technical paper due in the Spring of 2012 and the ongoing work to develop local schemes.