Wednesday, 22 May 2013

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But council tax benefit shake-up won't affect residents

COPELAND residents who currently claim Council Tax Benefit (CTB) will not face any changes when the scheme is replaced.

The Government is scrapping CTB from April 1, with local authorities required to introduce their own schemes instead.

That adopted by Copeland Council – formally agreed at a meeting on Tuesday – is identical to the current scheme and will have no direct effect on residents. Those currently receiving discounts will continue to do so without having to reapply, and incentives for people to return to work will continue to be in place.

Any changes from the CTB to the new Council Tax Support Scheme (CTSS) will be in terms of council administration. The scheme will be reviewed in 12 months.

The move has been agreed despite the council receiving a 10 per cent (£140,000) reduction from the government in the money it must use to deliver the CTSS. Part of this shortfall will be made up by Copeland revamping its council tax discount scheme, including charging homeowners a 50 per cent premium if they leave their properties empty for two years or more, and reducing the discounts being offered for unoccupied properties and second homes.

It is estimated that these changes – also agreed this week and which will be introduced on April 1 – will earn the council £115,000 of the £140,000 shortfall.

Councillors have also agreed to offer a 100 per cent council tax discount for householders who are flooded out of their homes for the time their property is vacant. This will cost the council an estimated £7,000 a year, but council leader Elaine Woodburn said: “This is a small price to pay to help alleviate the stress for those who experience flooding.

“People will be aware the government has abolished council tax benefit and introduced a discount scheme – then asked us to deliver it locally with 10 per cent less money. This is a cut to our funding of £140,000.

“We took the conscious decision not to pass these cuts on to people already facing hardship through the benefits freeze, universal credit and the disgraceful bedroom tax. Whether we can continue to do this I don’t know, but our priority remains, for as long as possible, the vulnerable.

“One of our priorities is a local discount for flooded properties. We have seen first-hand the devastation flooding brings, and we think it fair to offer full council tax relief whilst a home is affected in this way.

“These proposals will go some way towards recouping the £140,000, but we also think they’re fair. Ultimately, because of government cuts, we’re in the position of having to make difficult decisions. This is another of many.”

Coun Alistair Norwood added: “I think these changes to discounts are fair; we are taking away discounts from those who have the money to pay. This is about balance.”

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