Telford & Wrekin Council seek public views on changes to Tax Benefit scheme

Like all other councils next year, Telford & Wrekin must implement Government policy changes to the Council Tax Benefit scheme. The Government has said that all councils in April 2013 are to replace the current national Council Tax Benefit with a new local Council Tax Support scheme.

Telford & Wrekin council says that under these changes, the Council will next year receive at least 10 per cent less from Government for Council Tax Benefit payments. They estimate the  impact of this change to be equivalent to an extra £3.1 million cut in the Council’s budget next year.

Councillor Bill McClements, cabinet member for Resources and Service Delivery, said: “This cut is making no allowance for inflation and is assuming the economy is improving so that the number of claimants will reduce. There is no evidence locally to support this. This change will also affect the police and fire service.”

Today the Council is publishing its proposals for its Council Tax Support scheme - on which people have until Friday October 26 to give their views.

Council Tax Benefit is paid to a wide range of people including working families in low paid employment, or people who find themselves unemployed for short periods because of redundancy as well as the long term unemployed or people unable to work because of illness.

In total, the proposed changes would affect around 10,000 current claimants in Telford and Wrekin.

The scheme also proposes to reduce Council Tax exemptions and discounts for some empty properties and second homes.

The objectives of the proposals are to encourage people to work and remain in work, to reduce the impact on the most vulnerable while not affecting the council’s expenditure on the elderly or on children’s services.

The Government has already said that council tax benefits for pensioners must not change. Telford & Wrekin also proposes that anyone classed as severely disabled or in receipt of war disablement or war widow pension will not be affected.

Among the key changes, the scheme proposes:

• Introducing an equal percentage reduction of around 21 per cent to 25 per cent to the amount of Council Tax Support paid to all working age customers (unless they are classed as vulnerable).

• Reducing savings and capital limits below which benefit is paid from £16,000 to £6,000

• Introducing a £2.50 minimum award level – some people currently receive a very low level of Council Tax Benefit support. We propose to end entitlement for anyone receiving less than £2.50 per week for Council Tax Support

• Removing the current Council Tax exemptions and discounts for empty properties and second homes. It is estimated this will generate an extra £1.2 million to help offset the shortfall elsewhere

• Introducing an empty homes premium on properties left empty for longer than 2 years –equivalent to an extra 50% of council tax.

For more details about the proposals or take part in the consultation online, visit www.telford.gov.uk/counciltaxsupport

Consultation forms and information about the proposals are also available at the Council’s First Point at Civic Offices in Telford town centre or at Wellington Civic & Leisure Centre. People can also give their views to the council via Twitter or Facebook.

The Council will also be holding an information event for people to come and hear about the proposed scheme and give their views. This will take place at 6pm on Wednesday September 26 in Civic Offices in Telford town centre. The public can book a  place by calling: 01952 383831 or email yourviewsmatter@telford.gov.uk

Telford & Wrekin Council leader Kuldip Sahota said: “The Government is forcing us to make these changes, which are effectively a further cut via the back door to councils.

“We already have unprecedented cuts in government grant for Telford & Wrekin Council, which together with growing demand for services are seeing us having to make £40 million in savings from 2010 to 2014. Next year alone, we expect to have to save at least £13 million.

“The Government is now forcing us to either cut services further or cut the amount we pay in Council Tax Benefit.

“These are very difficult and hard decisions and the changes we propose will affect many people on very low incomes, who rely on that support. Our proposals will also affect people who current receive discounts on Council Tax – for example if they own an empty property or a second home.

“We believe our proposals would help the most vulnerable, but given the savings the Government says we must find, would also mean that for many thousands of people the benefits they receive would be cut from next April.

“As a Co-operative Council, we want to hear people’s views on our proposals. Your views matter and will be key in helping councillors to decide on the final scheme that is adopted later this year, so please tell us what you think.”