Council Tax Support Scheme Mark Ransom Assessment Manager

Background to the change Announced in the June 2010 emergency budget with 10% reduction in funding – actual funding cut for Cornwall is nearer to 12.5% Consultation undertaken by DCLG in summer 2011 Response to the consultation published late 2011 Local authorities started detailed design work early 2012 Requirement to consult on the preferred option – undertaken during autumn 2012 National scheme for pension age customers – largely replicates the current CTB scheme which has been in existence since April 1993.

Funding the new scheme At present all CTB expenditure is funded by DWP through subsidy arrangements in the same way that HB is funded. Under the new scheme the Council will receive an annual up front grant Grant for 2013/14 is around £40m Subsidy for CTB in 2011/12 was£45.6m When combined with growth in expenditure in 2012/13 the funding shortfall is around £6m

Cornwall’s caseload Total benefit caseload of 59,623 for HB / CTB 53,815 in receipt of CTB 26,729 working age cases (49% of caseload) needing to absorb the funding cut Passported cases 15,601* Disabled 2,158 Lone parents 3,331 Other 5,639 * significant number of these claimants will also be classed as disabled

New scheme for Cornwall In order to achieve a broadly cost neutral replacement for CTB the following scheme has been adopted by Full Council: –Maximum level of help reduced to 75% of liability from the current level of 100% of liability –Liability used to calculate CTS capped at a Band D charge –Capital limit capped at £6,000 –Removal of backdating –Removal of underlying entitlement –Removal of second adult rebate

New scheme for Cornwall Needs to remain aligned with HB for ease of administration in the short term Will largely replicate current provisions within CTB regulations Families and disabled customers still receive additional support and protection through higher applicable amounts, additional premiums and certain income disregards Means test process will still apply Appeal route will now be through the Valuation Tribunal for England, potential for 2 separate appeals if combined with a dispute around the HB element

CTB to CTS Existing customers will automatically transfer to the new scheme on 1 April 2013 No need to submit a new application New entitlements have already been calculated and annual CTAX bills and CTS entitlement letters will arrive with customers during week commencing 11 March 2013 Claims outstanding on 31 March will be assessed under both schemes spanning 2 financial years

Exceptional Relief & Transitional Support fund £100,000 used to form an Exceptional Relief fund £1m set aside to form a transitional support fund for 2013/14 Aim of the scheme is to help the most vulnerable as they adjust to having to pay more CTAX or paying CTAX for the first time Help will be capped at 50% of any shortfall and available to working age applicants A further £150,000 has also been allocated to CAB to further support individuals and families with debt, budgeting and welfare benefits advice

Exceptional Relief & Transitional Support fund Awards will be discretionary and similar in nature to Discretionary Housing Payments Will be based on the customer’s income and expenditure The customer will be expected to discuss the most appropriate methods for paying their CTAX liability and accept signposting to debt and budgeting advice where appropriate Application forms will be available week commencing 11 March 2013

How does Cornwall’s scheme compare? East Devon limit liability to 80% Exeter City Council 80% Mid Devon DC 80% North Devon 75% Torridge 75% Torbay 75% Plymouth City 75%

More information and making a claim Visit our website at: Telephone You can now apply on line via our website and over the telephone on the number above ments/b13364/Supplement%20Agenda %20Pack%2029th-Jan- 2013% %20Cornwall%20Council.pdf?T=9https://democracy.cornwall.gov.uk/docu ments/b13364/Supplement%20Agenda %20Pack%2029th-Jan- 2013% %20Cornwall%20Council.pdf?T=9