Council tax benefit ending?

jimmann

How will this affect the property market? Most people are struggling to pay rent/mortgage as it is?

outtawork

surely wherever you live, if you are on benefits you will still have to pay the same amount of council tax, so moving won't help anyway.

jimmann

outtawork wrote: »

surely wherever you live, if you are on benefits you will still have to pay the same amount of council tax, so moving won't help anyway.

Not true. Council tax is more in expensive areas and more on larger properties.

anguk

jimmann wrote: »

So will families have to use some of their universal credit to pay their own council tax?

If there's a shortfall between the amount of council tax and the amount of council tax benefit then yes.

I actually hadn't heard about this at all until I read this thread. I've had a look and can't find anything about it on my local council's website but I did find something that said our council was going to keep the benefit the same for the "most vulnerable" customers for a year and try to make savings elsewhere. I'm not sure who they class as the "most vulnerable" though. I know pensioners won't be affected and apparently they make up 50% of council tax claimants in my local council so I'm guessing the other 50% of claimants will have to make up the shortfall if the council can't make savings elsewhere.

mjm3346

An area I know is looking at keeping full benefit for those over pension age and/or disabled but working age households will have to pay at least 20%.

jimmann

anguk wrote: »

If there's a shortfall between the amount of council tax and the amount of council tax benefit then yes.

I actually hadn't heard about this at all until I read this thread. I've had a look and can't find anything about it on my local council's website but I did find something that said our council was going to keep the benefit the same for the "most vulnerable" customers for a year and try to make savings elsewhere. I'm not sure who they class as the "most vulnerable" though. I know pensioners won't be affected and apparently they make up 50% of council tax claimants in my local council so I'm guessing the other 50% of claimants will have to make up the shortfall if the council can't make savings elsewhere.

So as I understand it there will be a maximum cap on total benefits any one family can get. I think its around 2grand per month which does sound a lot. But with rents so high now, rents will drink up most of that especially in the cities and expensive areas.

So say a family with a couple of kids is paying about a grand per month rent and a hundred or a couple of hundred in council tax per month, they will not have much left for bills and food?

anguk

I've just found the new proposals on my local council's website. They say that as pensioners make up 50% of claimants and they are protected it would mean the other 50% of claimants who are of working age would have to pay 20%.

However the council is aware that this could cause financial difficulties to many households so they're proposing that they make savings by removing discounts on council tax charges to empty properties and empty homes. They're also proposing that long term empty properties (2 years or more) will pay a premium rate of 150% council tax.

Hopefully this will mean that people of working age won't have their council tax benefit reduced.

anguk

jimmann wrote: »

So as I understand it there will be a maximum cap on total benefits any one family can get. I think its around 2grand per month which does sound a lot. But with rents so high now, rents will drink up most of that especially in the cities and expensive areas.

So say a family with a couple of kids is paying about a grand per month rent and a hundred or a couple of hundred in council tax per month, they will not have much left for bills and food?

I guess the only option would be to move to a cheaper area, around here average rent and council tax is half that amount, I only pay £300 a month rent for a 2 bedroom terrace.

jimmann

anguk wrote: »

I've just found the new proposals on my local council's website. They say that as pensioners make up 50% of claimants and they are protected it would mean the other 50% of claimants who are of working age would have to pay 20%.

However the council is aware that this could cause financial difficulties to many households so they're proposing that they make savings by removing discounts on council tax charges to empty properties and empty homes. They're also proposing that long term empty properties (2 years or more) will pay a premium rate of 150% council tax.

Hopefully this will mean that people of working age won't have their council tax benefit reduced.

Good idea there are still over a million empty homes in the UK.
150% council tax that should reduce a lot.

FTBFun

jimmann wrote: »

Good idea there are still over a million empty homes in the UK.
150% council tax that should reduce a lot.

Indeed - then they can spend all their money on silver - especially once all the repossessions are cleared out.

(zzzzzzzzzzzzzzz)