MSE News: Council tax benefit could drop 20%

CIS

Where does localisation come into it?
I thought council tax was already a localised benefit, as you dont claim from the 'dwp' you claim from your local council surely?
ie - its already localised.

Council Tax is localised , Council Tax Benefit isn't.

At the moment the council only administer HB and CTB on behalf of the DWP , under the new system the CTB will be run by the council and they will be able to set the rate paid (within reason) as their discretion, i.e they wont be running it on behalf of DWP.

xmen2

Miss_Bolan wrote: »

I have to agree with other posters - this is a disappointing story bordering on scare-mongering.

I am a Revenues and Benefits Officer at a Local Council, in benefits I calculate Housing and Council Tax benefit and in revenues I administrate council tax accounts.

And.... I have nothing of any use to add to this thread!

We are sent emails/updates on a regular basis from a number of different sources regarding the changes proposed to the benefit system and the only conclusion we are able to reach so far is.... No one's got a clue! There are a lot of vague papers and proposals and half hearted ideas and it would seem nothing has been decided firmly (although the government plans to put this all through in 2013 - not without making a total mess they won't!).

For those on council tax benefit I would take no notice of this 'story' yet - there is not enough information to reach any conclusions at all.

Good luck with the big day and thank you for calming my nerves with regard to the 20% cut to Housing Benefit as i'm totally dependent on benefits and unable to find suitable work

michaels

No comment re 'suitable' work.

However as mentioned above to me the big issue (as well as the 10% cut) is the distribution factor - generally tory councils with a lower proportion of residents receiving the benefit will be affected much less, in a way a back-door work around to changing the funding formula.

Also another tory stich up of the lib dems - the lib dems get the localism bit they want but then probably end up also carrying the can for the integrated 'cuts' bit. Does anyone know if there is any ringfencing of funds or can the councils actually make their own decisions re council tax levels and the total bill for refunds? What about increasing the CT by 10% (and thus triggering a 10% increase in the central gov hb funds (offsettting the 10% reduction) and then pay a citizens rebate of 10% to all CT payers?!

rogerblack

michaels wrote: »

What about increasing the CT by 10% (and thus triggering a 10% increase in the central gov hb funds (offsettting the 10% reduction) and then pay a citizens rebate of 10% to all CT payers?!

There are limits on council tax rises imposed by central government.

DaisyFlower

I think its a good idea, its a bill at the end of the day so why should people get it subsidised in the first place. Making those on benefits pay part of it will mean less choose a life on benefits as the system wont be as cushy.

HappyMJ

DaisyFlower wrote: »

I think its a good idea, its a bill at the end of the day so why should people get it subsidised in the first place. Making those on benefits pay part of it will mean less choose a life on benefits as the system wont be as cushy.

As long as benefits increase by the same amount then go ahead and do it. Many find it difficult at the moment trying to live on benefits and introducing a bill which for me would be £3.30 a week (20% of 75% of a Band B property) or £5.70 a week for a family in a typical Band D property would be made even more difficult. I can see many choosing not to pay and risking further action. BTW I don't choose to claim and have a life on benefits I need to claim to be able to pay the bills. It's not cushy at all.

Weary_soul

This is a disaster waiting to happen imo. The whole idea terrifies the life out of me. Seems this government won't be happy until we're all thrown out on the street.

I_luv_cats

£500m savings - is it really worth putting through against:

The cost of the current gov. review \ consultation and the cost of the councils having to decide how to implement it, rewriting policies, re-training of staff, chasing non payers of the council tax difference.

This will be another failed idea as it will cost more than it will save.

They could stop the council tax altogether and save the cost of implementing it, chasing up payment and put it on income tax instead.

HappyMJ

I_luv_cats wrote: »

£500m savings - is it really worth putting through against:

The cost of the current gov. review \ consultation and the cost of the councils having to decide how to implement it, rewriting policies, re-training of staff, chasing non payers of the council tax difference.

This will be another failed idea as it will cost more than it will save.

They could stop the council tax altogether and save the cost of implementing it, chasing up payment and put it on income tax instead.

The average band D council tax in England is £1,439. To put that onto income tax would increase the basic rate of tax from 20% to 30%. I really doubt any government would want to do that.

DaisyFlower

HappyMJ wrote: »

As long as benefits increase by the same amount then go ahead and do it. Many find it difficult at the moment trying to live on benefits and introducing a bill which for me would be £3.30 a week (20% of 75% of a Band B property) or £5.70 a week for a family in a typical Band D property would be made even more difficult. I can see many choosing not to pay and risking further action. BTW I don't choose to claim and have a life on benefits I need to claim to be able to pay the bills. It's not cushy at all.

Why would benefits have to increase? Employers dont put wages up everytime somebody has an increased bill.

If somebody on benefits lives in a band c or above then they have the option of looking for a cheaper property in a lower band.