bassetlaw district council. full draft local council tax support scheme

4recovery of Council Tax Benefit. (For an explanation of terms you are not familiar with,please contact the Benefits team on 01909 533710)When we introduce the CTS scheme, we will assess people in a similar way to the way wecurrently assess people for Council Tax Benefit.However, subject to Government rules, the Council proposes that the CTS scheme will applya maximum eligible amount of Council Tax at between 80% and 90% of total Council Tax.This may mean, for example, that claimants currently on the full 100% Council Tax Benefitmay have to pay 10 or 20 % of their Council Tax. The Council proposes that the maximumamount of eligible weekly Council Tax under the scheme may apply to all applicants for CTS,unless under Government rules the applicant receives protection from the impact of thescheme. The Council understands that the Government intends to fully protect pensionersfrom the impact of local schemes of CTS. Pensioners are defined by the Government aspeople attaining pension credit age, and they will not see their level of entitlement change.This means that under the new scheme, nearly everyone of working age will have to paysomething towards their Council Tax, even if they currently have it all paid for them byCouncil Tax Benefit.The CTS scheme: The maximum amountThe maximum amount of Council Tax Support which may be awarded under the CTS may belimited to 80% , 85% or 90% of the total Council Tax due, or such other percentage,calculated on a weekly basis. This may not apply to pensioners, who are exempt from thesechanges and other protected groups defined by the Council as vulnerable.The CTS scheme: Other proposed adjustmentsThe Council also proposes that the CTS scheme may make provisions in relation to theaward of CTS in the following circumstances:1. The amount of capital held: the scheme may make provision for those holding capital andsavings above a limit to not be eligible for CTS, and may determine that limit at a lower ratethan the current limit in the CTB scheme which is £16,000;2. The scheme may make provision for the application of different non-dependantdeductions, applicable for other adults living at the property. For example, if a couple makea claim for Council Tax Support but have another adult living with them, such as an adult sonor daughter (working or not) , this may impact further on the Council Tax Support awarded(by reducing it) than under the current Council Tax Benefit scheme. This may mean that thehousehold could be asked to pay more towards the Council Tax:3. The scheme may make provision for the removal of Second Adult Rebate for working ageclaimants ;

54. The scheme may state that backdating of CTS is not permissible and thereforeentitlement starts on the day that the claim is made, largely following CTB but where itcomes to “good cause or reason” being shown for backdating under CTB, under CTS therewill be no grounds for backdating. Claimants will be expected to claim in good time:5. The scheme may propose to include or “count” some elements of earned and unearnedincome which is currently not counted when working out CTB. This may include existingCouncil Tax Benefit earnings disregards, for example the first £10 per week of a couple’swages and £17.10 of weekly Working Tax Credit. Sometimes, money we don’t count is calleda disregard.6. To incentivise work, the scheme may include extended payments (called run-ons). Wheresomeone on an out of work benefit (for 6 months or more), starts work and the Counciltherefore receives a cancellation from DWP of the “pass ported” status – we will consult onpaying full CTS entitlement for 4 -6 weeks before we take their (new) earnings into account.7. The scheme may include a provision for hardship where additional support may beavailable to offset reductions for claimants who experience severe financial difficulty as aresult of these changes. However any such proviso must be made within the legal processand not have an adverse impact on the generality of council tax payers.Vulnerable peopleThe Council proposes that the scheme may determine who may be partially protected fromthe costs of the Council’s CTS scheme, by inclusion in the Council’s scheme as ‘vulnerablepeople’. The Council’s determination of ‘vulnerable people’ may include people withdisabilities; people with responsibilities as carers for disabled or elderly people; peoplewith responsibility for young children; people facing the risk of homelessness; or people towhom the Council has a duty under the Armed Forces Covenant.The Council’s scheme may provide the rules by which people are to be consideredvulnerable, which may include their qualification for identified “filter” Benefits; theirsituation; their qualification for compensation payments.

6SCHEME ADMINISTRATIONApplications for claims in the proposed schemeClaimants will continue to be required to make applications and provide proof of theircircumstances.There will be obligations on the Council to assess those claims, verify the details provided, to giveclear decisions and to offer a route for a customer to appeal if they do not agree with the decisionsthat have been made.At present Housing Benefit and Council Tax Benefit claims are administered by the Revenues andBenefits team and we are proposing for applications for the new CTS scheme are administered in thesame teamNew ClaimsAn application will be required for all new claims from the 1st April 2013.The Council will set clear targets for processing claims and monitor against them. Where insufficientinformation has been provided to allow a claim to be assessed, a member of staff will contact thatcustomer by phone to explain what information is needed and when it should be provided. TheCouncil will continue its 48 hour claim service at its One Stop Shops.An application may be in writing on a form approved by the Bassetlaw District Council to adesignated office, or by virtue of an electronic claim process provided by or on behalf of theBassetlaw District Council.Verification procedures will be devised and subject to change throughout the financial year that thisscheme covers.Existing claimants on Council Tax BenefitExisting claims of Council Tax Benefit will be subject to a transition without the need for a furtherclaim unless there has been a gap in benefit of more than a benefit week. An appropriate means ofapplication will be decided by Bassetlaw District Council and may be revised as required.Evidence of identity where possible will be transferred from any existing Council Tax Benefit claimsthat are in payment as at 31 st March 2013 or have been in payment within the preceding 12 months,otherwise 2 forms of Identity will need to be provided.The duty to report changes in circumstances will remain the same as under Council Tax Benefit.

7TransitionStatutory regulations are intended to define how claimants currently in receipt of Council TaxBenefit under the current scheme will transfer onto the proposed new CTS scheme.A review process may be implemented by Bassetlaw District Council for new and existing awards.Awards may be reviewed in a time period to be determined by Bassetlaw District Council and failureof the claimant to fulfil any request during a review of their award may result in the termination ofthe award of council tax support.General administration of the schemeInformation from Bassetlaw District Council confirming discount granted, removed or revised will beby an adjustment to the Council Tax Bill. The bill itself will be the formal notification, together with acalculation statement, which will be issued usually by post whether or not the claim was successful...Any overpayment will be rectified by the amount being clawed back by an adjustment to the CouncilTax bill.AppealsThe proposed scheme will contain a right to appeal. The Government has yet to stipulate the routefor appeals. At present Housing and Council Tax Benefit appeals are heard by the Tribunals Serviceand appeals over Council Tax liability are heard by the Valuation Office Tribunal. In any case, the firststage of appeal will be review by a council officer who was not involved in the original decision.Further appeal will either be via a statutory route or via a further internal council process, but isexpected to be to the Valuation Office Tribunal.UpratingThe new draft Council Tax Support scheme proposes that any figures set out in the final scheme maybe uprated, to take effect on 1st April each year following the commencement of the scheme, by theconsumer price index, retail price index rate of inflation set out in the preceding September, or byanother rate determined with reference to provisions made for housing benefit and universal creditor as decided by Bassetlaw District Council.People from abroadThe Government intends to apply the same restrictions as exist under the Council Tax Benefitscheme to exclude foreign nationals with limited immigration status and non-economically activeEEA individuals who are not exercising EU treaty rights from receiving Council Tax reductions. Theprescribed requirements relating to immigration status will mean that individuals subject toimmigration control under Section 115 of the Immigration and Asylum Act 1999 and non-

8economically active EEA nationals who fall into various categories to be set out in regulations, willnot benefit from Council Tax reductions.RefugeesThose persons that have recognised refugee status humanitarian protection, discretionary leave orexceptional leave to remain in the country outside of the immigration rules and who are exemptfrom the habitual residence test will be entitled to apply for Council Tax Support as long as theirstatus has not been revoked.Permitting a person to act for another personCurrent arrangements for a person to act on behalf of another will continue. For example, where aperson has been granted a Power of Attorney for a Council Tax payer or in cases where a couplewishes to make an application.ComplaintsIf an applicant wishes to complain about the Council Tax support scheme or their application, thecouncil’s normal complaints channels will be open to them.Universal CreditFrom October 2013, the national implementation of Universal Credit begins.The Council’s approach to CTS may include provisions which are designed to deliverconsistency with national scheme of Universal Credit. The provisions which the Council mayinclude within the CTS scheme in this regard include, but are not limited to:• the basis under which entitlement to Universal Credit is treated as a valid claim for CTS inaccordance with the Council’s scheme;• the treatment of Universal Credit as income within the Council’s scheme;• the operation of the Council’s scheme with the Universal Credit systems, including but notlimited to the provision of work incentives; and• the means by which the Council sends and receives information in relation to successfulclaims for Universal Credit, and the basis on which that exchange of information is treatedas valid for the purposes of the Council’s scheme.When we set up the new CTS scheme, we will look at the other Benefit entitlement thatresidents who want to claim Council Tax support are getting. We will look at how gettingUniversal Credit might affect your entitlement to Council Tax Support.PensionersThe Council’s final CTS scheme, subject to Government regulations will replicate as far aspossible the existing provisions under which pensioner eligibility for Council Tax Benefit isassessed. Regulations will be as similar as possible to existing regulations provided formeans testing of pensioners and they should ensure that Council Tax Support for those of

9pension credit age should not be reduced as a result of this reform. Three types (or classes)of pension credit age claimant will be prescribed in the regulations covering those at orbelow applicable amount, those with income higher than applicable amount and secondadult rebate cases. Applicable amount is a weekly notional living allowance calculated bythe DWP for benefit purposes and relates to the age and circumstances. For example, theapplicable amount for a single pensioner is less than that for pensioner couple. Applicableamounts will continue to be set by the DWP following the abolition of Council Tax Benefit.CONCLUSIONBassetlaw District Council has a legal duty to properly implement a CTS scheme, but withreduced central funding. We aim to make sure that those on financial need receive the mosthelp towards their Council Tax payments. The exact details of the scheme cannot yet bedetermined until such time as regulations are made and consultation has taken place withmembers of the community and other authorities, such as the County Council, Fire & PoliceAuthorities as well as Local Councils.In addition, due consideration will be given to the outcome of an equality impactassessment and decisions over which options are ultimately adopted in prioritising financialneed for Council Tax Support.