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gynn · 20-01-2013, 07:12

Interesting to read about the new arrangements for Council Tax relief that the Coalition is imposing on Councils such as Hyndburn.

It means basically that EVERYONE of working age will have to contribute at least 20% of their Council Tax. The days of 100% relief are over (except for pensioners).

How many of the people previously receiving 100% benefit will pay their share? Well, according to the Council, about half of them, and that will only be after it increases resources in collecting the money.

From the report to Council:- It is anticipated that the collection of small amounts of newly levied tax from low income households will be problematic. It is estimated that the collection rate for Council Tax from the 5,600 working age households who will be required to pay a minimum of 20% of their bill will be as low as 50% which will impact on overall collection rates. 3,600 working age households are considered high risk in terms of non-payment of Council Tax as these households are currently receiving 100% Council Tax Benefit and many will receive a Council Tax Bill for the first time. We will keep Council Tax recovery under regular review, as happens already, but it may be that additional resources will be required, at least in the short term, to address the increased recovery activity.

So it raises the question. How much cash will actually be raised, after the costs of collection are taken into account?

Is it a money spinner, or just a cynical move to pander to the view that benefit recipients are just a gang of lazy shirkers?

20-01-2013, 07:12	#1
gynn Senior Member+ Join Date: Apr 2009 Posts: 1,136 Liked: 10 times Rep Power: 4983	Council Tax Support Scheme Interesting to read about the new arrangements for Council Tax relief that the Coalition is imposing on Councils such as Hyndburn. It means basically that EVERYONE of working age will have to contribute at least 20% of their Council Tax. The days of 100% relief are over (except for pensioners). How many of the people previously receiving 100% benefit will pay their share? Well, according to the Council, about half of them, and that will only be after it increases resources in collecting the money. From the report to Council:- It is anticipated that the collection of small amounts of newly levied tax from low income households will be problematic. It is estimated that the collection rate for Council Tax from the 5,600 working age households who will be required to pay a minimum of 20% of their bill will be as low as 50% which will impact on overall collection rates. 3,600 working age households are considered high risk in terms of non-payment of Council Tax as these households are currently receiving 100% Council Tax Benefit and many will receive a Council Tax Bill for the first time. We will keep Council Tax recovery under regular review, as happens already, but it may be that additional resources will be required, at least in the short term, to address the increased recovery activity. So it raises the question. How much cash will actually be raised, after the costs of collection are taken into account? Is it a money spinner, or just a cynical move to pander to the view that benefit recipients are just a gang of lazy shirkers?