The government recently introduced changes to the Council Tax Benefit system to start in April 2013. They are changing the rules on how money is paid, and changing the name to Council Tax Support.
In Manchester around £50 million is spent on council tax benefit. Initial figures showed that funding for a local scheme would reduce by 10 per cent, leaving a funding gap of £5 million.
It means that, from April 2013, there will be less money to go round for people who claim the support.
Manchester City Council want to ensure that the most vulnerable residents are supported, but also need the scheme to be affordable.
There will be no changes to the level of support that pensioners are entitled to receive.
The City Council recently asked people to comment on their proposals for change and the consultation ended on 14 October 2012.
Extra money
But since the consultation closed, the government has announced a change to the funding. It means that, for one year only, the Council can claim an extra £1million for Council Tax Support.
To get the extra funding the Council's council tax support scheme must make sure that those people who would receive 100 per cent support under the current council tax benefit rules pay no more than 8.5per cent of their council tax liability.
So Manchester City Council are changing the proposals to reflect this extra money. Once again the City Council are asking what you think of their plans. Here are the changes:
• Everyone of working age who gets Council Tax Support would get their benefit reduced by 8.5 per cent of their council tax liability - not 15 per cent as originally proposed
• People of working age who now get all of their council tax paid would have to pay at least 8.5 per cent of the bill - not 15 per cent as originally proposed
• The City Council will not limit support to Band A (for those that need one bedroom) or Band C (for those who need two or more)
• Second adult rebate will not be withdrawn
• You will still be able to get Council Tax Support of less than one pound a week
• The assessment of self-employed earnings will be not based on at least the minimum wage
• The City Council will not include the savings or capital that a claimant is genuinely holding for another person when their entitlement is worked out
This all means that all working age claimants will be better off between 2013 and 2014 than they would have been under the original proposals.
But the City Council recognise that people will still be worse off than they are now. So the City Council have reserved a small amount of the extra money to help vulnerable people in extreme hardship, and to help people who are going into work but are still on a low income.
Tell Manchester City Council what you think
The changes to the original proposals described here will only last for one year: from April 2013 to March 2014. Manchester City Council will need a new scheme for April 2014, and will tell you about that nearer the time.
To take part in the consultation, visit: www.manchester.gov.uk/info/200024/consultations/5889/council_tax_benefit_changes
Deadline: Friday 21 December 2012