Localising Council Tax Support – Communications Update 7 December 2012
Further to the communications update sent on 26th November we are sending this email with an update on further policy developments. If you feel there is something missing or if you would like further information on any of the topics below, please do get in touch at LCTS-reform@communities.gsi.gov.uk
Certainty of Funding for Parish and Town
Councils
The Government
published its response to the consultation on the Council Tax Base on 26
November. This is available at
https://www.gov.uk/government/consultations/localising-support-for-council-tax-council-tax-base. The consultation response also provides, at
annex B, guidance for billing authorities and parish / town councils on providing certainty of funding.
Since then further questions have been asked in relation to the certainty of funding for parish / town councils. This note set out some of those
questions and provides answers with the aim of assisting parish / town councils and billing authorities to work together on this issue. This note
should be read in conjunction with annex B of the consultation response.
<<final extra questions.doc>>
Prescribed Requirement and Default Scheme
Regulations
The Council Tax Reduction
Schemes (Prescribed Requirements) (England) Regulations2012 (SI 2012/2885)have now been made, laid before
Parliament and published on the Parliamentary publications website: http://www.legislation.gov.uk/. This is the final version of the
regulations, which are now in effect (as of 27 November): http://www.legislation.gov.uk/uksi/2012/2885/contents/made.
The regulations prescribe requirements for all local Council Tax reduction schemes. Importantly, this includes the way council tax reductions will be calculated for people of pension-credit eligible age (that is, women’s pensionable age – currently just over 61).
The Council Tax Reduction Schemes (Default Scheme) (England) Regulations2012 (SI 2012/2886)have also now been made and laid before Parliament and published on the Parliamentary publications website. These prescribe the default Council Tax reduction scheme which will apply to any council which has not made its on scheme on or before 31st January 2013. They will come into force on18th December: http://www.legislation.gov.uk/uksi/2012/2886/contents/made .
Track change documents of both sets of regulationshave been added to our website: https://www.gov.uk/government/policies/giving-local-authorities-more-control-over-how-they-spend-public-money-in-their-area--2/supporting-pages/localising-council-tax-support . The intention is to assist billing authorities by indicating key changes made to the draft regulations as between the 7 September version and final versions. However, please note, local authorities are responsible for checking their schemes against the final, published legislation - available on Legislation.gov.uk.
A draft Uprating Instrument amending the Prescribed Requirements and Default Scheme Regulations following the Autumn Statement is also about to be published on our website. This follows through on Government's stated intention to increase some of the allowances in the Prescribed Requirements and Default Scheme in line with DWP's uprating of Housing Benefit following the Autumn Statement.
Universal Credit - worked
example
Responding to
stakeholder requests, we have published a worked example of how, under the
Default Scheme, a council tax reduction for a person on Universal Credit would
be calculated: https://www.gov.uk/government/publications/localising-support-for-council-tax-council-tax-reduction-scheme-taking-account-of-universal-credit-income
Those interested in this may also want to view updatedWork Incentives Guidance, to be published on our website soon. This includes advice on handling Universal Credit awards in the council tax reductions context, so as to support work incentives.
Guidance on administrative matters
Some elements of localised
council tax support will in future operate under existing Council Tax
provisions in the Local Government Finance Act and related regulations.
This note will provide clarity for local authorities on how some administrative elements will be dealt with under these provisions, where these are not covered in the Default Scheme and Prescribed Requirements Regulations: https://www.gov.uk/government/publications/localising-support-for-council-tax-guidance-note-on-administrative-matters .
OBR Forecast Figure
The Autumn Statement confirms that the funding for support for council tax across Great Britainwill be £4.3bn in 2013-14 and £4.3bn in 2014-15, which is equal to 90% of the council tax benefit forecast.
This is set out on page 141 of the OBR's Economic and Fiscal Outlook.
http://cdn.budgetresponsibility.independent.gov.uk/December-2012-Economic-and-fiscal-outlook23423423.pdf
Final council tax support fundingallocations local authorities in England will be published as part of the provisional Local Government Finance Settlement later this month.
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