Ealing Plan Changes to Council Tax Support Scheme
New system will give discounts based on annual net income alone
Ealing Council’s Tax Support Scheme may be far simpler to navigate in future, with a proposed move from the current means tested calculation to a simpler income banded approach.
The Council has just launched a consultation into the changes, which will see state benefits and tax credits disregarded, and the discount purely based upon an applicant's net income and that of their partner, if they have one.
A council spokeswoman said there are no savings attached to the proposals for the new Council Tax Discount scheme.
She said: “The proposed changes intend to simplify the scheme and the way the entitlement is calculated. We are hoping that this will improve take up of Council Tax Support amongst low income households and that it will provide increased stability for people whose income fluctuate each month.”
“The on-going roll out of Universal Credit, which is due to be completed by 2024, also means that the council needs to change the local CTS scheme to avoid increases in the cost of administration.
“The proposed scheme will also reduce the number of revised council tax bills sent to residents for minor changes in income.”
She said entitlement to CTS will not change for those in receipt of benefits.
“Those in employment or self-employment or having other income will be placed in an income band and will be awarded a discount as a percentage of their council tax liability.
“The entitlement may change for those who are not on benefits or who have other adults living in the property.
“Some people will see an increase in the support they are entitled to and some will see a reduction.
“We are proposing to cap these changes to maximum of £2 per week.”
The council is considering changing the current CTS scheme from April 2020. Certain groups, such as pensioners, will not be affected by the changes. Working age persons currently in receipt of CTS may be affected by the proposed changes.
The proposed scheme will keep the maximum 100 per cent discount for applicants who fall into the protected category and 75 per cent for all other applicants.
Several drop-in sessions are being held at libraries across the borough, full details can be found at www.ealing.gov.uk/consultations
Councillor Bassam Mahfouz, cabinet member for finance and leisure said: “The proposed changes to the council tax support scheme will simplify the process, making it much easier for applicants to understand and to see at a glance what they could be entitled to.
“It will reduce the need for customers to report changes as only those changes that would result in a change to their income band will have to be reported. Also changes to a non-dependant’s income will be reduced to just reporting the start or end of work.
“With the council having to manage on a budget that has reduced by 64 per cent, meaning that for every £1 we used to get we now receive 36p, simplifying the scheme will also ensure that the administrative costs are kept to a minimum and we can make decisions for applicants far quicker, ensuring they can manage their finances far better.”
The consultation is open until October 27 2019.
Ged Cann - Local Democracy Reporter
October 8, 2019