Council Tax changes from 1 April 2013

From 1 April 2013 there are to be changes to council tax, council tax benefits, discounts and exemptions.

From 1 April 2013 the current council tax benefit scheme will no longer exist as it has been abolished by the Government. Council Tax benefit is awarded to customers on low or no income to help them pay their council tax.  It is currently a national scheme paid for and regulated by the Department for Work and Pensions (DWP).

All local authorities have been required to design their own replacement local scheme – called the Council Tax Support Scheme.

Stratford-on-Avon District Council has agreed to continue with  a new scheme that is very similar to the current Council Tax benefit scheme for the next financial year (2013/14) and all council tax benefit recipients will receive a similar amount of support under the 'new' Council Tax Support Scheme.  All existing customers will be automatically transferred on to the new scheme from 1 April 2013 and will receive notification letters and council tax bills in March 2013 showing how much they will have to pay.

Pensioners entitled to council tax benefit are to be fully protected under the new scheme (currently about 60% of the people entitled to council tax benefit in Stratford District fall into this category).

Under the new rules, although the District Council will administer the Council Tax Support Scheme, funds provided to councils by central government for the new scheme will be reduced by 10% compared with the amount currently available, leaving the District Council and its precepting bodies, such as the Police, County Council, local parish and town councils, with a shortfall of approximately £750,000.

To offset the impact of this loss of funding to the District Council, further changes to council tax discounts will take effect:

• Properties that are furnished (but unoccupied) and are no-ones sole or main residence, for example second homes, will no longer receive a 10% discount.
  
  
• Properties that become unfurnished and unoccupied which have been such for a continuous period of less than 3 months will have no charge for the first 3 months and will then revert to a full charge.
  
  
• Properties that are unoccupied and unfurnished for over 2 years will be subject to a 150% charge.

Cllr Maurice Howse, Enterprise, Housing and Revenues Portfolio says: “When deciding on the scheme it was important to make it as fair as possible to all our residents, whether they pay the full council tax or are entitled to support. As a result the decision has been made for money to be recouped by abolishing a number of discounts previously available on empty properties and on second homes, together with the introduction of a council tax premium on those properties which are 'long-term' empty to encourage the owners of these properties to bring them back into use."