Further to approval of changes to council tax benefit, this in from the council, in their own words. Ed
Thousands of working age residents – who will shortly be asked to contribute to their council tax bill for the first time – are to receive advice in a letter from the Isle of Wight Council.
The authority is to write to around 8,500 working age residents explaining how they will be affected by the recent abolition of the national Council Tax Benefit Scheme and the introduction in its place of a local council tax support scheme.
Spread payments
As well as explaining the new scheme, the letters also give advice on how residents can spread the payments over 12 months as opposed to ten months over which the tax is traditionally paid.
Under the local council tax support scheme – approved by the Isle of Wight Council in January – those of state pension qualifying age and including those in receipt of Disability Living Allowance, Severe Disabled Allowance, War Widows Pension/ War Disablement Pensions/ Armed Forces Compensation and the long term rate of Incapacity Benefit remain protected and would receive the same support as they would have got under the current council tax benefit scheme.
Funding gap of £1.8m
However, thousands of other working age people who do not fall into these categories – but have previously qualified for full benefit – will be expected to make a contribution for the first time.
This is in the context of the government reducing the money available to fund the schemes, meaning that the Isle of Wight Council has had to implement changes in order to meet a funding gap of £1.8 million.
Average weekly cost
Under the new council tax support scheme, the maximum proportion of the bill a person who previously paid nothing will be asked to contribute is 8.5 per cent of their council tax bill for the transitional first year. This would cost the average person £1.50 a week.
From year two the proportion of the bill a person who was previously exempt from payment will be asked to contribute is 20 per cent. This would cost the average person £3.60 a week. This continues to compare very favourably to other Island households who pay 100 per cent of their bill.
Letter explains background
“We are now writing to all those affected to make them aware that, as a result of the national changes, they will be required to make a contribution,” said Ian Lloyd, Isle of Wight Council benefits manager.
“The letters will be explaining the background to the changes and also give advice on how the payment can now be spread over twelve months as opposed to the customary ten, particularly to help those residents who may be paying the charge for the first time.
“We are aware the changes to the scheme will place a new responsibility on thousands of residents so we are keen to give these people as much information as possible. We hope the letters will make it clear to people how they will be required to contribute when the new bills are issues later this year.”
Scheme to protect the vulnerable
The new scheme was adopted by the Full Council in January 2013 following a ten-week consultation period.
Isle of Wight Council leader councillor David Pugh said: “The challenge was to come up with a scheme that protected the most vulnerable residents but also did not place an undue burden on families who may already be struggling to meet the rising cost of living. We believe that it is fair that all people who are eligible to work make a contribution – albeit a small one in percentage terms – to the services they receive from the council.”
Image: © Tax Brackets
