Andrew Burton IRRV - Head of Revenues, Benefits & Customer Services

Bassetlaw DC November 2012

What is happening to (scrapping of) Council Tax Benefit and -what have we done/still to do at Bassetlaw DC ?

x Bedroom Tax

X Universal Credit

X Social Fund

Practical analysis…20 mins

1) From 1st April 2013, there is no more Council Tax Benefit. Councils instead must put in place a locally determined scheme that awards discounts to residents by reference to financial need.

2) The local scheme will be funded by the Government at a level of 90 per of existing “demand led“ CTB. ……… (continued)

3) Pensioners cannot be worse off than they are now under CTB. They are protected and the Govt said this is the only intervention in schemes.

4) The new local scheme must somehow encourage the journey from welfare to work, the idea being that if councils did more about job creation and unemployment, the 10% saving in CTB would heal itself.

5) Under the equality duty , must not, disadvantage vulnerable groups. So, some working age groups should not face reductions such as the severely disabled.

CTB caseload 2012 -10,500 claimants CTB spend £9.130m 2012/13 10 per cent is >£910,000-£1m with new cases Pensioner caseload - 5089 Working age earning- 1881 Working age IS/JSA 3565 Existing spend on pensioners £4.3m Existing spend on working age £4.8m Expected spend for working age under new

scheme £3.9m

MPA and districts in Notts worked together on standard menu of options and framework

But, there is no countywide scheme as Billing Authority must reflect different challenges.

Not all Notts agree to types of change e.g. a weekly liability restriction , Ashfield ,Broxtowe and Gedling said no ….

Council Leaders -involved, informed re menu options and timetable , Difficult choices for members

LGA Chairman Sir Merrick Cockell said “Councils are being put in a very difficult position. Under the proposed scheme most councils will have to ask people on lower incomes, including the working poor, to pay more council tax than they currently do

Use the Council Tax Benefit scheme as basis- but restrict support for Council Tax for working age people yet protect the vulnerable (severe disability and war pensions)

– Everyone pays something including JSA /IS by presenting (in Bassetlaw) 80% of liability for rebating

– Indicative modelling: • Potentially nets £0.7m (cap support at 80%) - £1.003m. (cap support at 75%)

Band A ,Harworth charge now £1115.50

Gets Income support /JSA so rebate pa £1115.50 ie £ 21.39 pw

If only 80 % rebate-able so £21.39 x80% so gets £17.11pw which is £892.26 pa in new support

£1115.50 minus £892.26 = £223.24 or <£19 pm - specifically £4.28 pw to pay .

This element would account for 7/10 of shortfall ( c 700k )

Capital limit from £16,000- nets <£0.030m Scrap Second Adult Rebate for working age

(£0.012m) No backdating awards (£0.020m) Increase non dep deduction (£0.050m) Stop ignoring Child benefit (£0.220m) Stop ignoring income disregards (£0.090m) Consider vulnerable class Consider hardship fund

Consulted ………….

residents with the least money will receive the most help

Support will be distributed as widely as possible among people eligible to claim the discount

The scheme will support people moving into, and on, low paid work.

The scheme will ensure that everyone apart from the most vulnerable will pay something towards Council Tax

Leaflets /booklets- 22,000 mailshot On line survey www.bassetlaw.gov.uk Bassetlaw CAB/A1Houisng / other RSL/2

shires CU/Vol sector, Fin Incl group Parishes/local councils Road shows TRA 8+ weeks 29/8 to 28/10/2012

Mr Pickles made an announcement first reported in the Times 13/10/12

Share of £100m is £217, 275 Conditions apply , mainly IS related cases Transition, no Income Support /JSA case to

be worse off by more than 8.5% Substantially underfunds the gap Other changes in attempt 1, can’t apply Grant can’t be claimed until after scheme

deadline 31st Jan 2013 May need to re do our scheme and consult

again Initial angry reaction…………

FURY Meddling Descending into chaos. Bad thing made worse During 3rd reading, amendment to review in 3

years and include Council Tax Support in UC Threw out changes to home alone discounts Doomed to failure , takes money off poor,

lasted 3 years, late central interfering ,labelled poll tax ii

Bad week, that was the last week in October

Approx 390 On the 80 per cent- survey is split ,

disagree said do it lower than 80 per cent 250 to 90 re Hardship Count income? – do it excl war widows Other tweaks - do it said 260/75 Agree vulnerable do it said 260/50 96 per cent from Bassetlaw 61 per cent not on CTB and mostly under 60

“MY CONCERN IS THAT YOU WILL NOT BE ABLE TO MAKE THE SAVINGS AND YOU WILL INCREASE COUNCIL TAX BILLS. MIDDLE CLASS WORKERS WILL SUFFER AS USUAL!”

“I recognise that BDC are required to bring in changes to the system but I hope you are continuing to protest strongly against the rationale behind it ie that poor and vulnerable people should be hit disproportionately hard by the need to make savings”

Royal Assent to LGFA 2012 Council may decide to revise draft scheme

and take the Transitional Grant and accept its conditions

Fund the gap from tax base growth c 500k New discount powers We are unlikely to re consult year 1 Will be consulting for year 2 scheme

Collection – est 50 per cent won't pay Collection costs >£50k more . Need DIRECT

Debit Vulnerable and unknown information Discount changes- consider the impact Major publicity on scheme decision Jan/ Feb Revs staff at full output anyway- year end Customer impact rent increase and council

tax. A huge telephone demand expected

Tax base, MPA and local councils

Empty property council tax

Decide on accepting share of £100m

BDC Weekly scheme and collection approach

CTS scheme by 31/1/13 (20/12/12)

Others Major member decisions Unprecedented activity

and customer and staff impact to plan for