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Council Tax Reduction Scheme. James Hurd IRRV (Hons), Compliance and Quality Officer Revenues & Benefits Service. Council Tax Reduction Scheme. The existing Council Tax Benefit Scheme will cease on the 31 st March 2013.
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Council Tax Reduction Scheme James Hurd IRRV (Hons), Compliance and Quality Officer Revenues & Benefits Service
Council Tax Reduction Scheme • The existing Council Tax Benefit Scheme will cease on the 31st March 2013. • To continue to assist residents with their Council Tax liabilities, we will be funded to run our own Reduction scheme. • For Pensioners, this will mirror the provisions of the existing scheme. • For working age residents we are given more leeway as the funding will be 10% less than the current projected CTB subsidy
Bedford’s Council Tax Reduction Scheme • To achieve the 10% reduction we will have to change the current system. • We have looked at what is currently awarded and looked to minimise the impact of this reduction. • We have a set of proposals which will be considered by the Council’s Executive this evening. • If agreed, we will consult for 10 weeks on these proposals, gathering feedback on their impact and making amendments if required. • It will be based on CTB with the following amendments:
Bedford’s Council Tax Reduction Scheme • (i) The maximum reduction will be capped to Band D, • Currently Council Tax Benefit may be awarded in respect of the whole Council Tax liability. • (ii)Capital will be capped at £8,000. • Currently Council Tax Benefit may be claimed by a person with capital of up to £16,000. • (iii)No reduction will be awarded where there is a non-dependent with a gross income over £316.00 per week or capital in excess of £8,000, except where the Council Taxpayer is a registered blind person. • Currently Council Tax Benefit is currently reduced by between £8.25 and £9.90 where a non-dependent adult’s income is more than £316 per week. • (iv)Remove alternative maximum Council Tax reduction or second adult rebate. • Currently a ‘second adult rebate’ of up to 25% of the Council Tax maybe awarded based on the income of the second adult rather than that of the Council Taxpayer.
Changes to Council Tax • The same Act of Parliament that provides for the CTRS, also allows for changes to the exemptions for vacant properties: • Class C allows up to 6 months exemption for empty and unfurnished properties • Class A allows up to 12 months exemption for property either requiring or undergoing “major works” • We will have the power to reduce these exemptions to nil, effetely meaning these exemptions will cease have any financial impact. • This is what we are proposing to do, subject to consultation and Council approval.