Oxfordshire Councils Draft Council Tax Reduction Scheme

Introduction:

The Welfare Reform Act 2012 provided for the abolition of Council Tax Benefit. Instead, the proposed Local Government Finance Act confers a duty on Billing Authorities to make provision for a Local Council Tax Reduction Scheme.

This document is a draft council tax reduction scheme, set out under the proposed section 13A(1)(a) of the Local Government Finance Act.

This document does not make any proposals for discretionary reductions under section 13A(1)(c) of the Local Government Finance Act. None of the Oxfordshire Councils currently provide any reductions under this power.

The government is reducing the funding to Billing Authorities by approximately 10% of estimated expenditure on Council Tax Benefit (were it not being abolished). This leaves Billing Authorities with some difficult decisions to make. The Oxfordshire Councils have decided that they do not wish to reduce the level of support which Council Tax Benefit currently provides. As such they will meet the cost of providing this support. This means that the proposed Council Tax Reduction Scheme will operate in the same way that Council Tax Benefit does currently.

The government have reminded Billing Authorities of their duty to protect vulnerable groups when designing their Council Tax Reduction Schemes. By maintaining existing levels of support, the Oxfordshire Councils believe that they have met this requirement.

This scheme, referred to as council tax reduction scheme (CTRS), is set out as a number of proposals that are dependent on:

1. The outcome of a consultation on this scheme;

2. The passing of the Local Government Finance Bill and subsequent secondary legislation;

3. The bringing into force of the Welfare Reform Act 2012 and any secondary legislation.

The draft scheme is the proposal from the Oxfordshire Councils for the year 2013-14. The scheme may be amended in subsequent years.

Claiming:

This draft scheme sets out proposed rules for working age claimants. The government are introducing separate regulations for people of pension age, and these will determine eligibility for support for this group of people. Regulations will also be introduced to prescribe certain classes of persons who are not eligible to claim council tax support.

Currently claims for Housing Benefit and Council Tax Benefit are made on the same form. It is proposed that information required for determining an application for CTRS will continue to be collected on the same form as is used for Housing Benefit. Forms will be available either on paper or electronically, in line with the existing methods of application in place at the different Oxfordshire Councils. Applications will be required for all new claims from 1 April 2013.

Statutory regulations are intended to define how claimants currently in receipt of council tax benefit will transition onto the new scheme. This statutory method will be used in the new scheme.

Applicants for CTRS will be required to provide evidence to verify their personal circumstances as determined by the particular Oxfordshire Council where they live.

Calculation of Entitlement:

It is proposed that eligibility for council tax support be determined by reference to the income and capital of the claimant and any partner; and by the income capital and number of non-dependants in the household.

It is proposed that eligibility under the new scheme is defined by the terms of the existing council tax benefit scheme as set out in the Social Security Contributions and Benefits Act 1992, the Social Security Administration Act 1992, the Council Tax Benefit Regulations 2006 and the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001. These regulations set out how council tax benefit is claimed, how it is calculated and how it is paid. This draft scheme proposes that the principals and methods set out in those regulations be used to determine council tax support, except where amendments are set out in this draft scheme or by statute under the Local Government Finance Act and accompanying legislation.

By maintaining existing levels of support, we are ensuring that vulnerable groups are protected, as the government has requested.

Treatment of New Benefits:

The scheme will specify how payments of Universal Credit will be treated. This will be influenced by the availability to Local Authorities of information on awards of Universal credit made to individuals.

Next year will also see the beginning of the replacement of Disability Living Allowance(DLA) with Personal Independence Payments (PIPs). In the new CTRS, it is intended to treat PIPs in the same way as DLA is currently in the Council Tax Benefit scheme.

Payment and Notification:

All awards of CTRS will be credited to the claimant’s Council Tax account. Applicants will be notified in writing about their award of CTRS, with an explanation of how it has been calculated. Applicants who are not entitled to CTRS will also be notified in writing that their claim has been unsuccessful.

Other Provisions:

The scheme will set out the requirements for recipients to report changes in their circumstances which will affect the amount of support to which they are entitled. Any overpayment will be rectified by the amount being clawed back by an adjustment to the council tax bill.

Consideration will be given as to how a claimant may appeal a decision made by the local authority under the new scheme and to what decisions are appealable under the new scheme. Regulations are intended to define the body to which an appeal can be made.

This draft scheme proposes that any figures set out in the scheme may be uprated, to take effect on 1st April each year following the commencement of the scheme, by the consumer price index, retail price index rate of inflation set out in the preceding September, or by another rate determined with reference to provisions made for housing benefit and universal credit or as decided by the authority.

Appropriate officers of the Oxfordshire Councils will be responsible for investigating incidences of suspected fraud in relation to CTRS. Instances of Fraud will be prosecuted under the Fraud Act.