How the poor will be hit by Council Tax Support scheme

The Special Meeting of Brent Council on Monday will be making decisions on the new Council Tax Support scheme that will leave many residents worse off. This follows the Coalition handing implementation of the schemes to local councils whilst at the same time reducing the money available by at least 10%.

The overall result in Brent is that residents who used to receive Brent will now generally  have to pay double the contribution to Council Tax that they used to pay.   These residents will also be hit by other benefit changes including the Housing Benefit cap and the Universal Benefit cap. 24,604 residents will be affected by the changes which can only have the effect of pushing more people into poverty.

The following table gives an overall picture but the full document needs to be read for detail on excemptions and the means-testing involved.
 

Description of deduction	Amount of weekly deduction 2012/13	Proposed weekly CTS scheme deduction	Annual change in 2013/14
Adult in receipt of pension credit guarantee credit or savings credit	Nil	Nil	Nil
Adult in receipt of employment support allowance (income related) main or assessment phase	Nil	Nil	Nil
Adult in receipt of job seekers allowance (contribution based) or employment support allowance (contributed based)	£3.30	£6.60	£171.60
Gross income of adult  in remunerative work is less than £183	£3.30	£6.60	£171.60
Gross income of adult in remunerative work is greater than or equal to £183 but less than £316	£6.55	£13.10	£340.60
Gross income of adult in remunerative work is greater than or equal to £316 but less than £394	£8.25	£16.50	£429.00
Gross income of adult in remunerative work is greater than or equal to £394	£9.90	£19.80	£514.80
Adult in receipt if job seekers allowance (income based)	Nil	£6.60	£343.20
Adult in receipt of income support	Nil	Nil	Nil
Adult working less than 16 hours per week or is on maternity, paternity, adoption or sick leave	£3.30	£6.60	£171.60
Any other adult not included in the above descriptions	£3.30	£6.60	£171.60

There are likely to be difficulties concerning collection of council tax where resident are already financial pressed or where they have not paid anything before.

A second decision that the Full Council will have to make is on changing the amount of tax paid on empty properties. Owners of such properties will now have to pay more Council Tax and in the case of long-term empty homes this could be a 150% tax after two years.

These are the proposals set out in the report:
 

• Class A empty properties (requiring major repairs or undergoing structural alterations) – reduce the current 100% exemption to 50% discount for the first twelve months.

• Class C empty properties (vacant and substantially unfurnished) – reduce the current 100% exemption to zero so that the owners of such properties pay 100% of their Council Tax liability with immediate effect from the date of vacation.

• Second Homes – Remove the current 10% discount so that owners of such properties pay 100% of their Council Tax liability

• Long term empty properties – charge a 50% premium after they have been empty and unfurnished for 2 years so that the Council Tax liability for such properties is 150% (after two years).

This is the full report: