Issue details

The Welfare Reform Act 2012 is bringing about huge changes in the way welfare benefits are administered.  The Welfare Reform Act 2012 provides for the abolition of council tax benefit with effect from April 2013. The Local government finance bill prescribes the way in which a local authority should introduce any replacement for the current scheme, known as the local council tax support scheme.

Legislation states that

Before making a schemethe billing authority must in the following order:

(a) consult any major precepting authority which  has power to issue a
     precept to it

(b) publish a draft scheme in such a manner as it thinks fit, and

(c) consult such persons as it considers are likely to have an interest in the
     operation of the scheme

The purpose of this report is to choose a draft scheme from the four options that are presented in Appendix 1.  The choice of scheme is the precursor to fulfilling the requirements set out above and determines the detail of any consultation that the Council must undertake in order to introduce a robust and lawful, local council tax support scheme. This report sets out:

·       Four draft  options from which one should be chosen as the Council’s preferred  Council Tax Support scheme to replace Council Tax Benefits with effect from April 2013.

• Further options to employ new, discretionary powers to reduce some council tax discounts and exemptions proposed by new technical reforms to council tax legislation which also come in to effect from April 2013.  These are presented at Appendix 2

Within the options at Appendix 1 are various proposals for the council tax support scheme which have been designed to limit the impact on those least able to afford council tax. The proposals are made based on the principle that any scheme should be simple and equitable across all groups and offer incentives for those who can work, wherever possible.  The preferred option, Option 4, provides a scheme for working age people only.  The existing or ‘default’ scheme will be applied to pensioners and the most vulnerable.