Go-ahead given for cuts in council tax benefit
RESIDENTS of the Stratford district who pay nothing in council tax look likely to lose this benefit from April next year.
Stratford District Council’s ruling cabinet has decided that the maximum reduction in council tax should be 80 per cent of the amount due rather than 100 per cent as it is now.
The decision will need to be ratified by the full council at its meeting on 12th December.
At the moment there are 3,078 working age claims for reductions in council tax, of which 1,582 receive 100 per cent support and pay nothing.
The proposal to cut the benefit follows two separate phases of consultation. In September questionnaires were posted to all 3,078 existing beneficiaries and in addition there was a six-week online consultation which closed on 14th October.
A total of 416 responses were received – 283 from the existing recipients and 133 from the online consultation.
The results showed that 62 per cent of the existing recipients did not agree that the support should be restricted to 80 per cent, while 50 per cent of the online consultees considered that 80 per cent was reasonable.
Proposals to alter the arrangements stem from a decision by the council last December, at which it was pointed out that the Local Council Tax Reduction Scheme (LCTRS) needed to change for long-term sustainability.
However, papers presented at Monday’s meeting of the cabinet stated: “A separate additional response was received from Citizens’ Advice Bureau, who accepted why the council were making the recommendation to introduce the scheme but pointed out that in other areas where similar schemes had been introduced they had seen a significant increase in referrals relating to debt issues.”
The papers stated: “The changes to the LCTRS will inevitably impact upon a number of current recipients and new claimants from April 2017.” And they acknowledged that those most likely to be affected were the ones that currently paid nothing.
“To help mitigate the impact upon the most financially vulnerable residents, it is proposed to introduce a council tax reduction hardship fund,” they added. “This initiative has been implemented by a number of local authorities who have introduced LCTRS changes following the removal of council tax benefit.”
The fund would be £100,000 for the year 2017-18. The changes would generate savings of about £59,000 a year. Around 375 claimants are expected to lose entitlement to local council tax reduction.
It’s estimated that the county council would receive £540,460 in increased income, the police and crime commissioner £80,740 and town and parish councils £24,290.
During the cabinet meeting Cllr Peter Moorse (Lib Dem, Hathaway), the leader of the main opposition on the council, said he had many concerns about the proposal.
“Is it right to get this income from the poorest people in the district?” he asked. And he said one resident had told him: “I’m scared to death because I don’t know how I’m going to pay.”
Cllr Moorse said: “The council has reserves of £7.5 million. This council doesn’t need the money and doesn’t need it anywhere near as much as the people it’s proposing to take it from.”
The leader of the council, Cllr Chris Saint (Cons, Shipston North), responded to Cllr Moorse by saying: “I am probably of your view, but I will support this because I don’t think the rules are sufficiently flexible for us not to.”
He said it was a national measure and Stratford District Council was the only council in Warwickshire that had not introduced it. And he added: “We’re providing for a hardship fund to help people in real difficulties.”
