Localising council tax support – LA event 21 November Q & A's

Data sharing and IT

Will the breakdown from DWP for Universal Credit be available?

A breakdown of the maximum award will be provided, together with the final amount of reward paid.  It is not possible to provide a breakdown of the final amount of reward, it is not made up of separate components.

How will the information from DWP be passed to local authorities?

If a claimant of a DWP benefit indicates that they are interested in applying for a reduction of their council tax, this will be recorded on the system and serve as a trigger for the information to be sent to the relevant local authority. 

What do local authorities do if the information is incorrect and how long will it take to rectify?

It depends on the source of the information and the requirements of the prescribed regulations and local scheme. If local authorities know that information supplied by an applicant is incorrect, it would be inappropriate for them to use it.  They should use the information they know to be correct. If the applicant is aggrieved on issue of a decision letter, they can write in to the local authority.

If the information is supplied by DWP and must be used as part of the prescribed requirements calculation (for example, a Universal Credit amount or a pension credit savings credit amount) they should raise the perceived discrepancy with DWP, but must use the figures provided by DWP according to the regulations.

If other information supplied by HMRC/ DWP is known by the authority to be incorrect, the authority should raise this with DWP/ HMRC as appropriate and seek to resolve the issue. 

If every universal credit award takes a month to process won’t this lead to a month’s arrears in council tax payments?

I think we need to think about this and how it differs to the existing system.

How is universal credit income treated under the Default Scheme?

This is set out in the Regulations. The main two paragraphs specific to universal credit in the Default Scheme Regulations are paragraph 28 (Applicable amount: persons who are not pensioners who have an award of universal credit) and paragraph 37 (calculation of income and capital: persons who are not pensioners who have an award of universal credit). In relation to the latter, universal credit income is added to calculation/ estimate of income of the applicant/ applicant and partner made and provided by DWP, as determined for the purposes of universal credit. 

More guidance on the universal credit provisions in the regulations will be published shortly. 

Please note that the universal credit provisions were originally published in the draft regulations on 16 July 2012 (see regulation 27 and 36) and further updates followed in the September version of the regulations:

https://www.gov.uk/government/publications/localising-support-for-council-tax-default-scheme-draft-regulations

On 29 October 2012, the Government provided a briefing note on the universal credit provisions and how these supported work incentives, which can be found here:

https://www.gov.uk/government/publications/localising-support-for-council-tax-explanatory-note-on-restated-default-scheme-universal-credit-provisions

Will local authorities be able to identify whether there has been a change of circumstances?

The precise mechanism and timing of notifications is yet to be determined, but local authorities will be informed of changes in circumstances that effect DWP benefit awards.  However, the recipient of a reduction should also notify the authority of any changes of circumstance. 

Appeals

There is a time limit to appeal for council tax benefit but not for council tax, what about council tax reduction schemes?

The appeals process for these schemes will be as it is for the rest of the council tax system.  The individual who is, for example, aggrieved by the local authority’s calculation of their council tax liability must give written notice to the billing authority saying that they think their liability is wrong; and then after 2 months, if the individual remains aggrieved they may appeal to the Valuation Tribunal as set out in s16 of the Local Government Finance Act 1992

In April 2013 council tax benefit will cease to exist what happens to appeals already in the system?

Council Tax Benefit appeals are outside the jurisdiction of the Valuation Tribunal.  Subject to any decisions by DWP about how long the relevant provisions remain in place, it will be for the Social Entitlement Chamber to hear any such appeals, whether currently in the system or yet to be lodged.

What are DCLG doing on the volume of appeals that local authorities will get on council tax support?

It is for local authorities to ensure that they do all they can to minimise the number of appeals that they receive, by ensuring that they explain to applicants the reasons for the outcome. 

What appeals can go to the Valuation Tribunal? 

We have amended section 66 of the Local Government Finance Act 1992 to expressly provide that a council tax reduction scheme (or any revision to the scheme) may be questioned only by judicial review.  Therefore, the Valuation Tribunal will not have jurisdiction to hear appeals on the grounds that the scheme itself is unlawful, just where is considered that an authority has wrongly applied its scheme or miscalculated a person's entitlement.

We are considering amendments to the Valuation Tribunal for England (Council Tax and Rating Appeals) (Procedure) Regulations 2009, including whether to require it to put into abeyance any appeal where there is an unresolved dispute of circumstance. 

Disputes of circumstance should more properly be resolved through existing alternative routes – the appellant should complain to the Local Government Ombudsman that there has been maladministration on the part of the local authority, as it is refusing to accept evidence that their circumstances are as they claim; or the local authority should determine liability on the basis of the information about circumstances supplied but consider pursuing the appellant for committing fraud.

If, after the dispute of circumstance is resolved, the appellant is still aggrieved the Valuation Tribunal would hear the appeal.

What is DCLG doing to manage the backlog that will probably develop at the Valuation Tribunal?

We are working with the Valuation Tribunal to determine what further powers and resources they may need to manage effectively these new appeals.

Technical reforms to Council tax

What is the timescale for regulations on technical changes to council tax?

Our intention is to lay all regulations relating to technical changes to council tax by the end of the calendar year.

Will there be a transitional period when Class A is abolished?

No

Will there be any changes to instalments?

The default is still 10 months but a taxpayer will have the right to pay by 12 months if he or she asks to do so.

Class C discount

Authorities will have complete discretion over the level of council tax and for what period.

Can local authorities challenge the single person discount?

Baroness Hanham CBE set out at both Report and 3^rd Reading of the Local Government Finance Act 29012, that changes to the single-person discount regime would be a significant tax increase for several million people, particularly single parents and low-income people of working age.  The discount has been part of the council tax system since its introduction in 1993 and enjoys a wide degree of public support.

For these reasons, the Government was unable to support the proposed amendments and following a lengthy debate the House of Lords rejected any change by a very large majority. The Government has no plans to revisit this issue.

Have DCLG spoken to DWP on attachment of benefits?

The existing processes for an attachment of benefits for unpaid council tax will continue to apply.