Localised Council Tax Support Scheme Consultation

Please note: this consultation has now closed. 

In partnership with all other Suffolk district and borough Councils, Ipswich Borough Council is asking residents for their views on sweeping changes to council tax benefit.

What is happening and why?

Council tax benefit is currently the responsibility of the Government but from 1 April 2013 local authorities are being told to design a Local Council Tax Support Scheme to determine how much discount working age people will receive in the future to help pay their council tax.

In addition, the Government is also reducing the grant made available to pay these benefits by 10% and has stated that pensioners must not be affected by these changes. This means some low-income working age households will have to pay more council tax as the amount of support they receive will be less.

However, in addition to the changes in benefit entitlement, councils can decide what discount people should receive in respect of empty homes and whether to cut or remove discounts for second homes. All Suffolk councils are asking residents for their views on discounts for empty or second homes.

You can download the full Ipswich Borough Council Tax draft scheme to learn more.

What are Ipswich Borough Council planning to do?

The proposed Council Tax Support Scheme and the changes to discounts, when combined, could meet the 10% shortfall. The consultation will ask residents for their views on the four changes and the results will help decide how much of the shortfall is met by each option.

Of the four, it already looks like benefits to working age residents will have to be reduced. However the consultation can help establish by how much. None of the options would affect low-income pensioners, as they are not able to work to help support themselves.

Ipswich Borough Council Leader, Councillor David Ellesmere, said: "This is a measure forced on us by the Government and we have no choice but to try to make the best of it. Our priority is to protect those in most need."

Option 1: Reducing the discount to those who are not working, but who are of working age and are available to work. This would have the effect of 'making work pay', by reducing the amount of benefits available to those who are able to work and increasing the incentive to work.

Option 2: Removing the discount available to owners of second homes.
This would ensure that owners of second homes, who currently only pay 90%, make an equal contribution to the local area.

Option 3: Removing the discount available to owners of empty homes
This would help bring empty properties back into use so that they can be used to house local families.

Option 4: End the second adult rebate.

This would stop those who are not entitled to council tax benefit from getting support because they share a house with someone who has a low income

For a better understanding of how these options could impact you please visit our  page of example cases.
Prior to presenting these options, a number were considered and rejected, according to Councillor Ellesmere. He said: "At first we considered using other Council budgets to make up the shortfall. However, this would have meant even more cuts to essential services than are already happening.

"We also considered increasing council tax for everyone in order to meet the Government's 10% cut. However, our residents have consistently told us that we should try and keep council tax down. Instead, we are seeking to make changes which reflect our determination to protect the poorest families in Ipswich."

How can you take part in the consultation?

The consultation, which starts today, is open to all residents and will last until 25th October 2012. The simplest way to complete the questionnaire is to answer the questions online at: http://www.surveymonkey.com/s/WPHT39C.  However, printed forms are available for those who do not have online access, from Grafton House reception or by on request by ringing 01473 432639.

Once the consultation has finished the results will be analysed prior to a final decision which will be implemented at the start of the new financial year in April 2013.

Please note: this consultation has now closed.