New Council Tax Support Scheme

Government changes mean that local authorities must introduce their own council tax support scheme from January 2013, while funding from the Government is set to be reduced by 10%.

Although consultations with Warwickshire County Council and the county's police authority have taken place, consultation with residents are still to take place and members of Stratford-on-Avon District Council's Cabinet will meet on Monday 30 July to approve proposals for this consultation.

Cllr Maurice Howse, Enterprise, Housing & Revenues Portfolio says: “This issue represents the largest change to the Council Tax System since its introduction in 1993. Although under this proposal it is suggested that the 'default' scheme be adopted for next year, which effectively means no change for current claimants, the District Council is still required to consult upon this.  The proposal within this report is designed to provide additional time for consideration of all options before long term decisions are made on any future scheme."

Once approved the consultation is due to take place from 6 August until 12 October, with the new scheme being approved by Full Council in November.

Under the current Council Tax Benefit Scheme the Council is effectively acting as an agent for the Department for Works & Pensions (DWP) and any cost of the benefits that the Council pays is 100% reimbursed from the DWP.

Under the new arrangements in 2013/14 the Department for Communities and Local Government will pay a 'fixed' grant to the Council, which will be 10% less than the income received.  This change from the current Benefits Scheme to a Support Scheme will have a financial impact on all those public services that rely on council tax for funding – a reduction of approximately £750,000.

The options available are:

• The Council could choose to retain the current scheme and make savings from other service areas or
• Amend the scheme with the aim to reduce the cost to the Council, however, under government rules there is to be no impact upon pensioners.