Brent Council is to adopt changes to the Council Tax Support scheme that will require residents to pay at least 35% of their Council Tax Bill (increased again this year by 4.8% D-band total £2,133.15). It will also require non-dependent members of the house-hold to pay £8 weeky if not in work and £20 if in work.
The majority of resident respondents rejected the proposed changes at consultation but the Council faced with a new deficit of £16m and a potential saving of up to £8m in council tax support costs will go ahead. The changes do not affect pensioners as they are in a separate Government administered scheme.
The Cabinet report states:
The
aim of these changes is for all households to contribute towards the Council
services that residents in the borough benefit from. However, it is recognised
that where a resident is unable to work because of their disability they may
face a particularly significant impact, as they may have higher disability
related costs and will not have the ability to increase their income. The
Council Tax Support scheme seeks to reduce this impact, by disregarding all
income from DWP or HMRC benefits in the Council Tax Support calculation. This
includes disability related benefits, disability premiums, carer’s allowance
and much more.
The Yellow column above is the reduction in the amount of Council Tax to be paid.
The yellow column above is the weekly amount of Council Tax that non-dependant members of the household will have to pay
The results of the Council's consultation are below showing the majority of respondents rejected the change. The majority of respondents were non-recipients of Council Tax Support:
The consultation enabled people to comment and these make interesting reading including the comment in this article's headline:
Out of 397 responses, 115
respondents also left comments.
For the people that Agree or
Strongly agree, the top themes that emerged were:
• Reasonable – These
respondents thought that the changes proposed were reasonable given the
Council’s financial situation and need to make savings. These respondents in
general thought that the scheme was generous and that it was a fair proposal to
introduce a minimum contribution for all Council
Tax Support recipients.
• Scheme Recommendations –
Some respondents raised suggestions for the new scheme. These included:
Reducing the top band to 80% instead of such a steep drop to 65% & reducing
last band to 15% (instead of 20%), having council tax support as a monetary
value (i.e. £) rather than a % reduction, including a vulnerable group to be
exempt from 35% minimum contribution & including other income, capital or savings
into the means testing (e.g. property, benefits income, etc.)
• Scheme still too generous
– Some people agreed but thought the minimum contribution should be higher, for
example, 50%.
For the people that Disagree
or Strongly disagree, the top themes that emerged were:
• Financial Difficulties –
These respondents thought that the changes proposed would cause them to fall
into further financial difficulty. The cost-of-living struggle was frequently
mentioned as well as an inability to pay the additional council tax that would
be required. Many people raised concerns around their disability and the
inability to find work or increase their income. Some
answers highlighted that pushing residents into further financial difficulty
could increase the demand on other council services and reduce the actual
savings achieved by this change.
• Protecting the Vulnerable
– Many respondents raised concerns around disabled residents, the elderly,
carers, or parents all with a reduced ability to find employment and cover the
council tax shortfall that will be created because of this change to their
support. These answers raised worries that
this scheme change would affect those on a low-income unfairly and expects
those with the lowest income to find spare income that doesn’t exist. Responses
highlighted that people were already struggling and this change would only
serve to exacerbate their struggle.
• Unfair – These replies
often highlighted that they thought it was unfair to target those in receipt of
Council Tax Support who have low-incomes already and an inability to pay
council tax often being carers, disabled or in receipt of benefits only. Some
answers highlighted that the people receiving this support are already on the
poverty line and this change could push people into poverty. Some respondents
believed that the change would breach Discrimination & Human Rights &
Equality Laws.
• Find savings elsewhere –
These answers highlighted the need for the council to find the savings from
somewhere else. Some of the reasons given were that this change would be
potentially more costly in the long run due to increased demand on council
services or increased outstanding debt. These responses raised that the changes
were targeting individuals who don’t have the means to contribute more, and many
suggestions were received to look to the wealthier residents within the borough
for savings. Other suggestions included: advocatingfor more equitable funding
from central government, finding efficiencies in other areas of spending,
increase income rather than cut services, targeting outstanding debt/fraud or
council tax evasion or reducing Brent employee salaries.
Question 2 - Changes to the
Council Tax Support non-dependant deductions
(£8 deduction for non-dep in
household out of work and £20 deduction for non-dep in household in work).
Out of 397 responses, 88
respondents also left comments.
For the people that Agree or
Strongly agree, the top themes that emerged were:
• Fair – These respondents
thought that it was fair to ask non- dependants to contribute towards household
bills including Council Tax and sensible to look at household income as a total
rather than only the income of a claimant or partner.
• Simpler – Comments
highlighted that a two flat-rate deduction system is an improvement on the
previous system and would be simpler or easier for residents to understand.
• Unfair – Whilst these
people agreed with the proposal, they believed in general that the £20
deduction for working non-dependants was fair whereas the £8 deduction for
non-working was too much of an ask.
• Scheme Recommendations –
These comments made suggestions to not take non-dependant deductions for
students.
For the people that Disagree
or Strongly disagree, the top themes that emerged were:
• Financial Difficulties –
These respondents thought that the charges proposed were too much of an
increase especially considering the current cost of living. Some people
highlighted that £20/week for a working non-dependant would be over £1000 per
annum and a significant portion of the Council Tax bill. These respondents highlighted
that this change would not be affordable, further push families into poverty or
struggle and that this change would hit the poorest.
• Unfair – Some of the
suggestions received thought that the £8 deduction was too much for
non-dependants that are not working, disabled or students. Some people believed
that deductions for working non-dependants should be means tested & based
on their income level, with higher earners contributing more.
• Find savings elsewhere –
These comments suggested that Brent look to other ways of making the savings or
cutting costs. These included looking at efficiency savings within the council,
increasing fines for parking penalties/littering/anti-social behaviour etc. or
empty property rate.
Brent Citizens Advice Bureau conducted their own survey of the impact of the changes. They said: Since 2021 Brent Council has made over 40,000 referrals1 for enforcement
action against residents with council tax arrears. The proposed changes risk
seeing an increase in enforcement action against households already struggling
with debt, and with very little income available for new or increased bills.
We conducted a flash survey to determine how the proposed changes to CTS could
affect Brent residents. In total, we surveyed 32 CTS claimants over a period of 3
weeks. The survey was targeted at Brent residents who already receive some level
of CTS, with questions aiming to establish respondents’ current council tax liability,
level of council tax support, and whether they maintain a positive budget. This
enabled us to assess how the proposed changes will alter the financial situations of
individual households.
Key Findings
• The average council tax bill increase for the CTS claimants we surveyed
was £524.98
• 13 out of 32 CTS claimants we surveyed did not have enough income to
cover their monthly costs, despite receiving the maximum level of CTS.
• 2 in 3 CTS claimants we surveyed will receive a new or increased council
tax bill that they currently do not have the monthly income to pay.
Their report and its recommendations are worth reading in full: