Worried: New Council Tax Support will never pay 100% even if no income?

sh1981

I've been doing a bit of research on this. Apparently, in my council, Cornwall, Council Tax Benefit will be replaced in april with Council Tax Support.

It appears that working age claimants pay at least 25% of the Council Tax even if they qualify for maximum help.

Came across http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&ved=0CEEQFjAC&url=http%3A%2F%2Fwww.cornwall.gov.uk%2Fidoc.ashx%3Fdocid%3D68d0644a-8524-4b25-ae6c-93a4805619ba%26version%3D-1&ei=DqYGU8uwLsHb0QWCwIAIusg=AFQjCNFJ1iS0UvMwjA03bsc_dqyrNRY4XQ&bvm=bv.61725948,d.d2k

a pdf file from cornwall council that tells of all the complicated rules, took the liberty to go through it in detail. Apparently I fall under Class D as I claim ESA.

Does that mean 25% of council tax would be paid by me? I don't know, theoretically I would be paying it from my ESA, as I have no other income. Since ESA is also given by the same government that gives council tax benefit (well council tax support as its known now), then what is the point in making the person pay?

Am I missing something? Would i still be eligible for 100% council tax support if I'm on ESA?

Forgot to mention we are also on DLA (highest). So how is a disabled person, who is on highest DLA meant to be paying this 25% if he / she is of working age?

So if someone could help me out by telling me if I'm (hopefully) missing something and in fact I might be eligible for 100% council tax support?

lukieboy96

I am on ESA and DLA and I have to pay a small amount of council tax. Only £8 a month

sh1981

lukieboy96 wrote: »

I am on ESA and DLA and I have to pay a small amount of council tax. Only £8 a month

Thank you lukieboy96. At least you confirmed it for me, good to know whats coming. Did a calc apparently mine would be £6 a week, thats almost over £20.

May I ask how long has it been that you've had to pay this extra amount? Is yours at 25%? May I know which council you're under?

rogerblack

sh1981 wrote: »

May I ask how long has it been that you've had to pay this extra amount? Is yours at 25%? May I know which council you're under?

In short - yes.
Councils have had reduced central funding for paying peoples council tax for those who are unable to pay.
Due to the way this funding has been structured. those councils with large elderly populations are heavily penalised due to those of pensionable age being 100% exempt from this.

This means the remaining burden falls on those of working age.
Especially for councils with high unemployment, this makes it extremely hard to protect the disabled from the impact of this tax without either raising the overall rate paid by people in-work (which they can't do for other reasons) or raising the minimum amount paid by those on JSA.

It's kind of insane that people of pensionable age on really good incomes are 100% protected and those on ESA-income-based may not be.

Caz3121

I thought councils had brought this in from April 2013

sh1981

rogerblack wrote: »

In short - yes.
Councils have had reduced central funding for paying peoples council tax for those who are unable to pay.
Due to the way this funding has been structured. those councils with large elderly populations are heavily penalised due to those of pensionable age being 100% exempt from this.

This means the remaining burden falls on those of working age.
Especially for councils with high unemployment, this makes it extremely hard to protect the disabled from the impact of this tax without either raising the overall rate paid by people in-work (which they can't do for other reasons) or raising the minimum amount paid by those on JSA.

It's kind of insane that people of pensionable age on really good incomes are 100% protected and those on ESA-income-based may not be.

True. It's ok though, pensionable people (if they are not well off), deserve a good life, so I don't mind them receving it, however what about people who are recovering from cancer, or shall I say struggling to recover and are on dla and esa. What logic states that they are considered of 'working age'.

Anyway all I wanted was to be sure really. I guess theres nothing we can do for now and it seems that's that.

I also feel 'bedroom tax' is somewhat related to this council tax support thing. What do you guys think?

sh1981

Caz3121 wrote: »

I thought councils had brought this in from April 2013

Wow, I think you're absolutely right. I think I've already been paying it!!!
I thought it was for arrears I owned from some years back or something.

If someone could confirm, my council tax letter says "Your property is Band A which has a weekly liability of £18.74. A liability reduction of 25% has then been deducted from this amount. Your eligible liablity is therefore £14.05."

I'm so confused now...ah well.

rogerblack

sh1981 wrote: »

True. It's ok though, pensionable people (if they are not well off), deserve a good life, so I don't mind them receving it, however what about people who are recovering from cancer, or shall I say struggling to recover and are on dla and esa. What logic states that they are considered of 'working age'.

The law does not say they are of working age - it just exempts totally even the richest pensioners.

Murphybear

OP I am in Devon, on ESA with no other income and pay £12 per month. There's loads of people in the same situation.

p00hsticks

rogerblack wrote: »

It's kind of insane that people of pensionable age on really good incomes are 100% protected and those on ESA-income-based may not be.

surely anyone on a 'really good income', whether of pensionable age or otherwise, wouldn't have been eligible for Council Tax Benefit anyhow, so the fact that they would theoretically be protected from the change to Council Tax Support is immaterial ?

WantToBeSE

I too am in Cornwall, and my I pay 25%, which is £18 a month for me.