Council Tax Reduction Scheme

James Hurd IRRV (Hons), Compliance and Quality OfficerRevenues & Benefits Service

Council Tax Reduction Scheme

• The existing Council Tax Benefit Scheme will cease on the 31st March 2013.

• To continue to assist residents with their Council Tax liabilities, we will be funded to run our own Reduction scheme.

• For Pensioners, this will mirror the provisions of the existing scheme.

• For working age residents we are given more leeway as the funding will be 10% less than the current projected CTB subsidy

Bedford’s Council Tax Reduction Scheme

• To achieve the 10% reduction we will have to change the current system.

• We have looked at what is currently awarded and looked to minimise the impact of this reduction.

• We have a set of proposals which will be considered by the Council’s Executive this evening.

• If agreed, we will consult for 10 weeks on these proposals, gathering feedback on their impact and making amendments if required.

• It will be based on CTB with the following amendments:

Bedford’s Council Tax Reduction Scheme

• (i) The maximum reduction will be capped to Band D,– Currently Council Tax Benefit may be awarded in respect of the

whole Council Tax liability.• (ii) Capital will be capped at £8,000.

– Currently Council Tax Benefit may be claimed by a person with capital of up to £16,000.

• (iii) No reduction will be awarded where there is a non-dependent with a gross income over £316.00 per week or capital in excess of £8,000, except where the Council Taxpayer is a registered blind person.– Currently Council Tax Benefit is currently reduced by between

£8.25 and £9.90 where a non-dependent adult’s income is more than £316 per week.

• (iv) Remove alternative maximum Council Tax reduction or second adult rebate.– Currently a ‘second adult rebate’ of up to 25% of the Council Tax

maybe awarded based on the income of the second adult rather than that of the Council Taxpayer.

Changes to Council Tax• The same Act of Parliament that provides for the

CTRS, also allows for changes to the exemptions for vacant properties:

• Class C allows up to 6 months exemption for empty and unfurnished properties

• Class A allows up to 12 months exemption for property either requiring or undergoing “major works”

• We will have the power to reduce these exemptions to nil, effetely meaning these exemptions will cease have any financial impact.

• This is what we are proposing to do, subject to consultation and Council approval.