1. Council Tax Support Scheme

2. What? Current CTB scheme is funded by central government. Sefton MBC pays £26.5m p.a. on their behalf. New scheme (Council Tax Support (CTS)) to operate from 1 st April 2013 A new Grant to cover the expenditure will be available but it will be reduced by 10%. Expenditure in excess of the grant will be Sefton’s responsibility. Abolition of council tax benefit provision is contained in the Welfare Reform Act Local authorities will have a duty to run a scheme to provide support for council tax in their area.

3. Why? CLG state it is part of wider policy giving councils increased financial autonomy Enabling power for the new scheme to be contained in a finance bill in the current parliamentary session. It is already in the Localism Act 2011 Give local authorities (LAs) a greater stake in the economic future of their area Give LAs the opportunity to reform the system of support for working age claimants Reinforce local control over council tax Give LAs a degree of control over how the impact of the 10% reduction Give LAs a financial stake in the support for council tax.

4. How? Design, application, award and payment will all be the Council’s choice, cost and risk. Except, for pensioners there should be no change in the current level of awards, as a result of this reform. Local authorities to ensure support for other vulnerable groups.

5. Local scheme / local risk LAs encouraged to collaborate to reduce costs LAs to consider how system can be simplified for working age claimants Reform accompanied by a new grant Clearly places the responsibility for developing the scheme on local authorities – at their risk Clearly states that local authorities will make the decisions on entitlement Local schemes should support work incentives Consultation with precepting bodies and the public Part of the budget and council tax setting processes. Scheme to be published by 31 st January 2013.

6. Impact For pensioners there should be no change in the current level of awards, as a result of this reform. Therefore, the 10% cut will fall on the working age claimants. 44% of the Sefton caseload are pensioners so the remaining 56% will take the full 10% cut which may mean on average, 30% to 35% reduction in council tax benefit – depending on the amount of the contingency. The impact of the reduction in housing costs as a result of housing benefit changes and the cap will have a cumulative affect on the ability to meet council tax and other domestic bills Collection performance will suffer

7. Timeline Spring 2012 –Primary legislation in passage through Parliament. –Government preparing and publishing draft secondary legislation. Summer 2012 –Primary legislation will be passed. –Secondary legislation will be prepared. Autumn/winter 2012-13 –Establish local schemes and set the council budget –Publish scheme by 31st January –Local scheme in operation from annual billing in March 2013.