Localisation of Council Tax Support Jarrow and Boldon CAF 25 October 2012

Background Welfare reform Introduction of universal credit 2010 Spending review Freedoms and flexibilities

Council Tax Benefit Means tested Support those on low incomes Poor take up rate (est. 70%) Eligibility rules complicated

Government Proposals (1) Consultation paper issued August 2011 Reduce council tax benefit costs by 10% Some local flexibility on eligibility CTB to be kept separate from universal credit

Government Proposals (2) Proposed introduction 1 st April 2013 Pensioners to be fully protected Govt. propose that vulnerable groups should be protected Government funding to be fixed

Impact on South Tyneside 10,800 pensioner households receive CTB 12,400 working age households receive CTB Average payment = £13.70 per week

South Tyneside Proposed Scheme (1) Protection of vulnerable groups -

South Tyneside Proposed Scheme (2) Protection for vulnerable groups Simple scheme to understand Applying standard deduction to non- protected groups Impact upon 6,800 people in borough

9 How this could affect our claimants Mrs Wright is 66 years old, lives alone and is in receipt of an occupational pension of £ per week. She has £2,000 in savings and lives in a Band A property. She receives £11.18 Council Tax Benefit against a liability of £13.93 per week and so has to pay £2.75 per week in Council Tax. Because she is of pensionable age there will definitely be no change for Mrs Wright under the new local scheme.

10 How this could affect our claimants Mr and Mrs Smith have two children under 5 and are both unemployed. They live in a Band B property. They qualify for payment of Income Support and Disability Living Allowance because Mr Smith is unable to work due to a long term illness. As a result they currently receive full Council Tax Benefit of £24.76 per week. If we protect claimants with a disability or with children under 5 there will be no change for Mr and Mrs Smith under the new local scheme.

11 How this could affect our claimants Mr and Mrs Williams have a son aged 12, a daughter aged 4 and a baby son who is 6 months old. Mr Williams works 40 hours per week as a security guard and earns £240 per week. They have joint savings of £8,500 and live in a Band C property. They currently receive £20.75 Council Tax Benefit against a liability of £24.76 per week and so have to pay £4.01 per week in Council Tax. If we protect claimants with children under 5 there will be no change for Mr and Mrs Smith under the new scheme.

12 How this could affect our claimants Mr Scott is 26 years old and lives alone in a Band A property. He is unemployed and qualifies for Job Seekers Allowance of £71.00 per week. As a result he currently receives full Council Tax Benefit of £13.92 per week and doesn’t pay any Council Tax. If we protect pensioners, disabled claimants and families with children under 5 Mr Scott would be required to pay £4.18 per week.

13 How this could affect our claimants Mr and Mrs Jones have a son aged 12, a daughter aged 10 and a son aged 6. Mr Jones works 40 hours per week as a security guard and earns £240 per week. They have joint savings of £5,500 and live in a Band C property. They currently receive £14.78 Council Tax Benefit against a liability of £24.76 per week and so have to pay £9.98 per week in Council Tax. If we protect pensioners, disabled claimants and families with children under 5 Mr and Mrs Jones would be required to pay an additional £4.43 per week.

Your Views Write to us us - Final decisions in December