55,000 families facing cuts in benefit support
MORE than 55,000 hard-up households face deep cuts in support to pay their council tax bill.
Under a controversial shake-up of council tax benefit, the government will hand responsibility to local councils – while demanding savings of millions of pounds.
Ministers insist savings are needed, with the bill in greater Bristol topping £77 million last year.
They say the ten per cent target saving is achievable because local authorities will be given more freedom over their spending, including to crack down on second home discounts.
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But the Institute for Fiscal Studies said this would be a "difficult" challenge for councils already facing cuts to their funding.
The government has barred councils from making changes to pensioners' entitlement – meaning working-age claimants face an average reduction of 19 per cent to their payments, the think tank said.
And in areas with higher than average pensioner populations that could rise as high as 33 per cent.
New figures show that in Bristol alone, there are more than 31,000 non-pensioners receiving council tax benefit, which is worth between £16 and £18 a week, and covers up to 90 per cent of a bill.
There are 9,660 in North Somerset, 8,720 in South Gloucestershire and 7,280 in Bath & North East Somerset.
These people would be in the firing line for any reduction in payments.
If councils chose instead to subsidise the benefit using other funds, it would require a 0.4 per cent reduction in spending on local services or a 1.9 per cent hike in council tax, the IFS warned.
In the current system, councils receive a rebate from central government for the amount of council tax they need to subsidise.
From 2013, council tax benefit will effectively be abolished, and councils will be given a set amount in advance, based on previous year's totals and including the cost saving target, to set up their own version.
Parliamentary figures show the bill for the payments reached just under £40 million in Bristol in 2010/11, and a total of £77.7 million across the four local authority areas.
Stuart Adam, of the IFS, said: "Councils have little experience or expertise in designing means-tested support schemes and very little time to do it."
The IFS report, funded by the Joseph Rowntree Foundation, found the funding cut would hit the most deprived areas hardest.
Local Government Association chairman Sir Merrick Cockell said: "Councils are extremely worried about how they're going to protect deserving and vulnerable people from the £500 million cut to council tax benefit next year.
"The cut goes way beyond the money that can be retrieved by cancelling discounts on second homes and empty properties and councils are being put in an impossible position."
Local Government Minister Andrew Stunell said local authorities are to get greater discretion over raising council tax on second homes and empty properties.
He said: "The vast majority of local authorities potentially have a substantial stream of additional income, if they believe they will face difficulties."
Comments
by karenpassmore
Monday, June 11 2012, 8:27PM
“Had a great idea to redress the balance, how about us Brits relocating to the countries where most immigrants come from and getting their governments to give us free homes, cars, free health care, free schools and enough money so as we can maintain our own standard of living.
When we are offered the same as we give to immigrants, then they can be entitled to the same from us in return ..... we cant feed the world on our own, other countries have to contribute to their own citizens as we have done for years
Of course being fair on taxation is a definite yes yes, it is obscene that so many fat cats escape their fair share of paying tax.... how about setting a maximum/minimum pay level with the top dogs earning a maximum of salary that is equal to 10 times their lowest employee's pay want to pay minimum wage, fine your own salary is capped at 10 times NMW. Want a £5 million bonus for doing your job, great, pay the cleaner £500k as well and all taxable on receipt,
Company car @ £50k a year, so a £5k bus/train pass for the cleaner as well, we could set about a real redistribution of wealth so very easily .... if the bosses don't like it, the sod off to China or other Countries where the abuses would not be tolerated
Somehow I don't think we would see many people claiming benefit top ups as they are poorly paid, and there would be no mega bonuses unless everyone in the business got them also on same ratio
just an idea which will never ever be considered by those who are so greedy they think only of themselves.
Hmmm shall I stand for parliament on this type of manifesto? just need another 399 to join me and we could change forever the way this Country fails the public
oh well, just a crazy idea, or is it?”
by lolly60
Thursday, June 07 2012, 1:34PM
“You just have to read the story in the newspapers today to see how they abuse the system all the time .I know its not in Bristol/SG but it still is an abuse doesnt matter where it is.10 people that have just been given a( £2.million )house to rent for a £1000 a week they are all on Benefits.Why cant they move into something less grand a bit further out of London.SO WRONG AND UNJUST TO THE HARD WORKING TAX PAYERS OF THIS COUNTRY.”
by patcrose
Thursday, June 07 2012, 11:47AM
“Means testing is the answer
1) No mobile phone/IPAD
2) No car
3) No satellite TV
4) No smoking or drinking
5)Community job...litter picking...cleaning windows to secure any benefit.
That'll sort out the genuine need.”
by lolly60
Thursday, June 07 2012, 10:01AM
“@Collegefields
to bloody right well said both of you”
by collegefields
Thursday, June 07 2012, 9:43AM
“A total overhaul of the system is the only way forward, and this will mean a massive increase in means testing.
As harryreg_uk said, far to many people can use the system without any input.
As long as you have single mothers who can afford two foreign holidays a year and drive around in new cars claiming benefits and pensioners who get heating allowances when they have tens of thousands in shares etc the system will fail those who it is genuinely meant for.
The system is broken because people use it as a lifestyle not a lifeline.”
by harryreg_uk
Thursday, June 07 2012, 8:51AM
“"Councils are extremely worried..." here's a ground-breaking idea - if you stopped giving away £ Billions to people walking in to this country with nothing and getting everything, you wouldn't have to do this!!!!!”