Council Tax help for vulnerable residents

Full Council have agreed to reduce the minimum amount all working age residents in Plymouth are required to pay towards their Council Tax from 25 to 20 per cent.

This will be implemented from April 2014, a year after the Council Tax Support scheme was introduced following the Government’s welfare reform announcements.

Addressing a reduction in Government funding for benefits of around £2.6 million, Plymouth City Council’s new scheme saw approximately 16,000 households having to pay more. For some of these residents this was for the first time.

Residents have been paying their bills but some have been making other sacrifices such as skipping meals or not heating their home. This in turn has put huge pressures on charities and the voluntary sector in the city.

The Council set aside an exceptional hardship fund to help residents struggling to pay their bills and have been urging people to get in touch to discuss their circumstances.

Fewer residents have applied for exceptional hardship than planned. This along with higher collection rates for Council Tax than predicted has helped increase the levels of Council Tax Support for the 2014/15 financial year.

Cabinet Member for Finance, Councillor Mark Lowry said: “Last year the Government forced us to implement our own scheme, against our will, whilst addressing a £2.6 million shortfall in our funding.

“A year on, and after taking a look at the figures, I am really pleased to announce we will be able to reduce the financial burden on our low income residents from April 2014. Reducing the minimum amount of Council Tax to be paid from 25 per cent to 20 per cent will mean, on average, an extra £50 per resident a year, and when you don’t have any spare money, this is a lot!”

All other changes made to the scheme in 2013 will remain the same and war widows, veterans and pensioners will continue to be protected from the changes.

Full Council have also agreed today to reduce the charge for Liability Orders is reduced from £83 to £60 with effect from 1 April 2014.