Council Tax Reduction scheme 2014-2015 consultation

Overview

Camden’s proposals

We are proposing a Council Tax Reduction (CTR) scheme for 2014 -2015 that is in line with the needs of the community and incentivises people to get back into work.   Before making a decision we are seeking the views of local people and those who may be affected.

For more details about the various options and additional information please see:

• Frequently Asked Questions
• Background Information
• Equality Impact Assessment
• Draft proposed CTR scheme 2014-2015

Pension Credit Age (100% scheme)

If you are of Pension Credit age you will not be affected by any changes.  People of Pension Credit age can have a maximum of 100% of their Council Tax paid depending on their income and other circumstances. 

Working Age Scheme (WA scheme)

If a person is not of Pension Credit age they will be on the Working Age (WA) scheme and their CTR will be determined by the rules of the WA scheme

Camden’s 2013 – 2014 Working Age scheme

In  2013/14  Camden adopted a 91.5% WA scheme which meant that all working age CTR recipients had to pay a minimum of 8.5% towards their Council Tax bill. 

Why your views matter

Revising the scheme

By law each financial year the Council must consider whether to revise or replace its scheme.  Any revision must be made by 31 January in the preceding financial year to that which it is to take effect. This means the Council must consider any revision to its current scheme by 31 January 2014.   

We have looked at the scheme and would like to make a change in 2014-2015 in order to encourage people to start work or increase their hours. This is why we are asking for your opinion.

Camden’s 2014 – 2015 Working Age scheme

Our preferred option for Camden’s 2014-15 scheme is to:

1. Keep the current Council Tax Reduction scheme where the maximum support available to working age people  is 91.5% of their Council Tax liability 
2. Increase the earnings disregard by £10 per week

Under the current scheme, if someone is working, the following amounts of earned income are ignored before we work out how much help they are entitled to.  These amounts were set in 1988 and have not changed since:

• Single person - £5 per week;
• Couple - £10 per week;
• Lone Parent - £25 per week;
• Some disabled people, carers and those in special occupations - £20 per week. 

The Council’s preferred option would be to increase these amounts by £10 per week in order to encourage people to start work or increase their hours.  We could do this without reducing the help other working age people get.

We would like your opinion about whether to make this change.

Your opinion

The Council would like your views on its preferred scheme for 2014-15. In particular:

• Whether the maximum level of support to working age applicants should remain 91.5% as it is now; 
• Whether people who are working should get extra help with their Council Tax; 
• Whether you have any comments or suggestions about our preferred draft Council Tax Reduction scheme or these changes generally.

Please click on the online survey link below and tell us your views.