Proposed changes to Council Tax Reduction Scheme 2017-18

Overview

We offer a discount on council tax to eligible people in Camden as part of the Council Tax Reduction Scheme (CTRS). The maximum discount available to working age people is currently 91.5%, which means that all working age people have to pay a minimum of 8.5%. We are proposing to increase the maximum amount of discount for working age people to 100%, meaning those with the lowest income would not have to make a contribution to Council Tax until their income increases.  Pensioners are already entitled to a maximum of 100% support.

There are five options set out below impacting on working age households only:

1. No change

Maximum CTRS discount available remains at 91.5% with no changes to eligibility or the applicable amount.

2. Maximum council tax discount available increases  to 100%

Maximum CTRS discount available increases to 100% with no changes to eligibility.

3. Decreasing the discount to less than 91.5%

This would increase the amount of Council Tax payable by all working age claimants.

4. Offer further discounts to specific groups

The scheme could provide protection to specified groups, such as families or disabled claimants, whilst keeping a deduction for all other claimants.

5. Design a different scheme

Develop a new scheme altogether, with discounts based on a different calculation than the current scheme. Any scheme would be subject to a full consultation and would not be implemented until April 2018.

Camden’s preferred option is option 2.

We currently collect about £1.03 million from customers on the maximum discount compared to £120 million for the whole borough. As well as relieving the burden of council tax on our poorest residents, this proposal will enable us to focus more resources on pursuing other debts from those that are seeking to avoid paying.

Why your views matter

We are required by law to consult on any proposed changes to the Council Tax Reduction Scheme. We seek your feedback on our proposal to increase the maximum council tax discount available to 100%.  Please give us your views on the proposed changes by clicking on the Online Survey link below.  Further information about the proposed changes can be found in the downloadable FAQs document at the bottom of this web page.

Following this consultation, the Council will not consult on CTRS annually unless any changes are proposed. 

Ask for an easy-read or large print version of this consultation document, or a version translated into another language by emailing Alan.Porter@camden.gov.uk.