Council consults on planned changes to council tax support

A review of Plymouth’s Council Tax Support scheme is underway nearly one year after its introduction with proposals to give more money back to residents.

The scheme, which has seen more than 16,000 households in the city affected, was introduced in April 2013 following government changes to the benefits system; part of the Coalition's welfare reform agenda.

Each council authority was required to create and implement their own local scheme and provide a reduction in funding for the least well off. Plymouth’s funding was cut by £2.6 million and a local scheme implemented that required everyone of working age to pay at least 25 per cent of their council tax.

After almost a year, Plymouth are proposing to change their scheme to help the most vulnerable residents in their city by reducing the minimum amount of council tax to be paid from 25% to 20% from April 2014.

It is expected the average claimant will benefit by approximately £50 per year.

Other recommendations include decreasing the charge of a Liability Order from £83 to £60. This is the charge applied to accounts when residents fail to pay their council tax after a court hearing following several reminders and a summons.

Councillor Mark Lowry, Cabinet Member for Finance said: “We implemented our scheme in April following the Government’s welfare reform changes. The plan was to implement a scheme that was fair to all residents but that we would also have a ring-fenced pot of money available to residents that experienced extreme hardship.

“Through hard work and dedication from our staff and those of our partners, we have been able to support the most vulnerable residents in our city through other means. This doesn’t however distract from the fact that these are extremely hard times for a large number of families. With the cost of living constantly rising it is important that we step up and help where we can. I for one welcome the proposed changes and an extra £50 for some will loosen the belt ever so slightly.”

Residents are being consulted on these proposed changes until 8 December 2013. Anyone wanting to take part in the consultation can visit the Council’s website www.plymouth.gov.uk. Hardcopies are available on request.

All changes to the existing scheme will be subject to formal consultation and adopted by Full Council by 31 Jan 2014.