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Council Tax Reduction Scheme

www.milton-keynes.gov.uk/welfare-reform

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Introductions

Hello we are

• Simon Bailey Programme Manager (Welfare Reform)

• Anne Jordan Technical and Policy Manager

• Katie Hammond Revenues and Benefits Client Officer

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What is Council Tax?

People who live in Milton Keynes pay Council Tax to the Council.

The money pays for things like rubbish collection, Libraries Street lighting Education Fire services Police

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What is Council Tax Benefit?

• Council Tax Benefit helps people who don’t have much money pay their Council Tax bill

• All the money for Council Tax Benefit comes from the Government

• The rules for Council Tax Benefit are made by the Government

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What is changing from April 2013?

• The Council must make up its own rules

• The Government will give the Council less money than before. £3 million less

• The Council’s new rules will mean people who don’t have much money will have to pay some Council Tax

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New Rules

• Some rules will not change

• Pensioners will not need to pay more

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Rules that might change – Option 1 – Everyone pays something

Now: Small income = No Council Tax bill

Change: Everybody pays something

• Probably £225 a year?

Raises up to £3.49 m

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Option 2: Remove Child Benefit / Maintenance Disregards

Now: Child Benefit and maintenance are ignored when adding up how much money a person has.

Change: Include Child Benefit and Maintenance as income.

Raises up to £2,113,000

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Option 3- Cap Council Tax Bands

Limit the amount of help to that of a smaller property

Currently no restriction Raises up to £228,000

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Option 3: Amend Capital limits

Now: £16,000 in savings = no Council Tax Benefit

Change £6,000 in savings = no Council Tax Support

Raises £78,000

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Option 3: End 2nd Adult Rebate

Now: If someone with low income moves into a house with a single person, the single person can claim money towards their council tax.

Change: Stop giving help for other people in the household.

Raises £31,000

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Option 3: Amend Income Taper

The people that have a little bit of extra money will have to pay more towards their council tax.

Now: They pay 20p for every “extra” £1.00

Change: they pay 25p or 30p for every extra £1.00

Raises: £207,000 to £362,000

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Option 3: Increase Non dependant contribution

Other people staying in the house have to help more with the bill

Now: Unemployed adults pay £0

Change: Unemployed adults pay £3.80?

Raises: up to £201,000

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Incentive to work

If people get jobs they will be able to earn more before they have to pay more Council Tax.

Now: A little bit of wages received is ignored (£5 to £45.10)

Change: More wages are ignored (£20 to £60)

•Cost: £327,585

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How to Give Your Views

Comments or Feedback

– Online at: www.milton-keynes.gov.uk/mkcconsultation (search for Council Tax)

– By email to: counciltaxsupport@milton-keynes.gov.uk– By post to: Local Council Tax Scheme

Milton Keynes Council,

Civic Offices,

1 Saxon Gate East

Milton Keynes

MK9 3HG

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Consultation

Any Questions?

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Council Tax Reduction Scheme

www.milton-keynes.gov.uk/welfare-reform