Thursday, 31 January 2013

Council Tax Benefit changes and Camden

Channel 4 News carried a piece about Council Tax Benefit Thursday evening.

Here's the position in Camden:  due to a reduction in funding from the Government councils will have 10% less money to support households with, which is approximately £2.7m in Camden for 2013/14.

This would mean that households previously judged too poor to pay Council Tax by the Government would be liable for upto 15% of the bill - £153 a year.

Camden council has taken steps to ensure that new Council Tax charges for the poorest families are offset for this year.

The Council Tax Reduction Scheme helps those people on no or low income to pay their Council Tax and replaces Council Tax Benefit which was established in 1992 by Government to ensure that the poorest households in the country did not have to pay full Council Tax.

The changes only affect working age claimants. Their entitlement to benefit will be calculated in the same way as previously but the maximum amount of financial support is lowered from 100% to 91.5%.  The amount could have been higher, but after consultation Camden has decided to participate in the Transition scheme to ensure that liability for many households who have never paid Council Tax before is limited to 8.5%, which is between £1.10 and £3.31 for claimants.

The cost of doing this is £460,000 for this year.

There are currently 25,900 households getting Council Tax Benefit in Camden.  The 16,800 working age claimants will potentially be affected by the changes and will have to pay something towards their Council Tax Bill.

No comments:

Post a Comment