Coventry families set to be protected from council tax rises

Hard-up families in the third of Coventry homes receiving council tax discounts are set to be protected from more government benefits cuts.

Labour council leaders intend not to pass on to households huge government cuts in council tax benefit of up to 17 per cent from next April.

Other councils are considering passing on the cut to families, including Nuneaton and Bedworth – creating a “postcode lottery”.

Coventry City Council would instead have to find £3 million extra cuts in next year’s budget for jobs and services – as its £30 million government grant for the benefit will be cut by that amount.

Council deputy leader George Duggins compared the crude government rates changes with Margaret Thatcher’s “poll tax”, adding: “Once again, the Government is effectively undermining their own argument that ‘we are all in this together’.

“They want poorer people to bear a disproportionate burden in their austerity programme. Their own economic polices are not creating employment and full-time jobs.”

He said passing on the cut would be a disincentive for people in part-time jobs currently receiving the benefit to find more work.

About a tenth of the 37,000 Coventry households benefiting from council tax subsidy have part-time jobs – which largely explains recent reductions in unemployment.

Many families are already being hit by a £10 cut in housing benefit – and council leaders say they cannot afford to lose £5 a week more by losing council tax discounts.

Government cuts to the benefit are part of £18 billion cuts in welfare by 2015 under austerity plans to eliminate the UK’s structural deficit of over £100 billion, which ministers say they have now cut by a quarter.

But with the country now in a double-dip recession and borrowing £150 billion higher than planned, at least two more years’ cuts could include £10 billion more welfare cuts.

Conservative chancellor George Osborne insists a £0.5billion cut to council tax benefit will encourage more people until work.

But Coventry council’s ruling Labour cabinet will on August 14 consider plans to keep it at current levels for at least a year from April.

The £3 million government cut would add to £14 million of council budget cuts next year – with £140 million and 1,000 job losses expected over the four years up to 2015.

Half the £3 million cut could come from savings in changes to council tax collection, said Coun Duggins.

Council finance director Chris West said the Government’s plans could end up costing councils taxpayers more in administrative costs from chasing non-payment of small council tax bills.

See also:

Rise in pleas for help over council tax in Coventr

Claimants may not be exempt from council tax

Advice on offer for people in Nuneaton and Bedworth affected by Council Tax benefit changes

HOUSEHOLDERS in Nuneaton and Bedworth likely to be affected by the forthcoming changes to Council Tax benefit are being offered advice and information.

A drop-in session is being held tomorrow (5.30pm-7.30pm) at Hatters Space, in Abbey Street, Nuneaton, at which the new system, which comes into force next April, will be explained by borough council staff.

A Town Hall spokesman said: “Currently people who have a low amount of income pay a reduced or, in some cases, zero amount of Council Tax through Council Tax Benefit (CTB).

“This is a means-tested benefit that is worked out using national rules and regulations.

“Nuneaton and Bedworth Borough Council claims back the money we pay out for Council Tax Benefit from the Government.

“However, CTB is to be abolished and councils have to replace it with their own scheme called Council Tax Support, which must be approved by January 31, 2013, ready for an April 1 introduction date.

All council’s will have ten per cent less money to spend on the new scheme than they do now.

“The Government has stated that all pensioner claimants will be protected from the changes and that no pensioners can be worse off as a result.

“It is anticipated that all claimants of working age who currently receive Council Tax Benefit will be affected and will have to pay something towards their Council Tax from April 2013 – even if they have never had to pay before.”

In North Warwickshire a nine-week consultation over the new proposals is taking place, starting on Monday,August 20.

Town Hall leader Dennis Harvey has accused the government of forcing the borough council to `do its dirty work’ over sweeping changes to tax benefits.

Under the changes to the Council Tax exemptions, some of the poorest householders in the borough will find their pockets even harder hit.

As of April next year, the current Council Tax Benefit system is being abolished.

Instead the borough council itself will be in charge of levying and collecting the money.

Everyone in the borough, except pensioners, will have to pay 20 per cent of their Council Tax before any benefits are deducted.

But the council have cushioned the blow because the original figure householders had to pay was 25 per cent, and it has also decided to set up a hardship fund to help those in most need.

Councillor Harvey condemned the changes, saying: “This is really the government passing the buck to us to do their dirty work.

“I think that the people who have thought this up should hang their heads in shame.

“A government cabinet made up of people earning thousands of pounds making decisions which will hit the people on the lowest incomes is totally immoral, yet it is us that has to carry out their dirty work.`

“We are trying to do this in the most human way possible and I hope that it is something that Nuneaton and Bedworth Borough Council will always do.”

Cabinet member for health and environment, Cllr Neil Phillips supported the council leader, adding: “I reluctantly agree to this, I think it is just an attack on the poor, it is not our doing.”

The all-powerful cabinet rubber-stamped the Council Tax exemptions plan.

But the final decision will not be made until all borough councillors have had their say.