Council Tax Reduction Scheme 2016-2017

Public Consultation
Consultation guidance
1.0 Background
Council Tax Reduction (CTR) is a means-tested discount to help people on low
incomes pay their Council Tax. It is a local scheme run by South
Northamptonshire Council that replaced Council Tax Benefit. No money is paid to
the people who claim it. Instead, we reduce their Council Tax bill by the amount of
support they are entitled to.
On 1 April 2013 central Government ended the national Council Tax Benefit Scheme
and gave responsibility for designing and administering CTR to Local Authorities. At
the same time, the Government made Local Authorities responsible for funding CTR,
but reduced the finance available by 10%. For South Northamptonshire this is a
reduction in funding of approximately 370,000 which is shared with the
Northamptonshire County Council and the Police and Crime Commissioner.
Our current Council Tax Reduction Scheme broadly follows the principles and rules
that applied to Council Tax Benefit and has been largely unchanged since its
introduction on 1 April 2013. A copy of the CTRS Regulations can be found on our
website (include link to regulations) Council Tax discounts and exemptions have also
remained the same.
Under the current scheme, everybody of working age who receives CTR must pay a
contribution of 8.5% towards their Council Tax bill. This means the maximum support
working age applicants can receive is 91.5% of their Council Tax bill. Pension-age
applicants continue to receive up to 100% support. Currently around 3330
households claim CTR. Of these approximately 1400 are of working age.
2.0 Why are we carrying out consultation?
Each year the Council is required to formally adopt a scheme by 31 st January to
commence on the 1st April of that year. Councils across the Country are developing
proposals for the 2016/2017 scheme.
South Northamptonshire Council is currently considering options for funding their
Council Tax Reduction scheme for 2016-2017 taking into account the reduction in
central government funding and also the need to protect some of the most
vulnerable residents in the district.

3.0 Options
To meet some of the funding gap by continuing to reduce the level of financial
support given to all working age households to a maximum of 91.5% (so all
working age households pay a minimum of 8.5% of their Council Tax)
To increase Council Tax to meet the funding gap. Residents in South
Northamptonshire have seen no increase in the councils element of their
Council tax for the last five years. The Council strives to find a fair balance to
support all residents and aims to keep tax rises low. We may be required to
conduct a referendum if a proposed tax increase is above a certain limit.
To reduce funding available for other council services. As an alternative to
reducing financial support for working age households under the Council Tax
Reduction scheme South Northamptonshire Council could cut spending in
other areas. As the Council seeks to maintain the level of local services to our
residents this is not considered a favourable solution.
Use of financial reserves. An option could be to use resources for a limited
time to fund part of the cost of the Council tax reduction Scheme. However
this is not a viable long term solution.
The Council also needs to consider whether to amend its Council Tax Reduction
Scheme to mirror changes introduced to Housing Benefit from April 2016 under the
Governments Welfare Reform programme. The changes are shown below:
Change
Withdrawal of family premium for working
age new claims made from 1st April 2016.
It will not be removed for existing claims.
Limit period for backdating of claims for
working age persons from 6 months to
one month.

Reason for change to CTRS

To align the CTRS regulations with
Housing Benefit to prevent increase in
scheme administration costs and also to
give equality
To simplify the process for claimants of
both schemes and to prevent an
increase in scheme administration costs

No decisions have yet been made and the consultation questionnaire seeks your
views to help us design the CTR scheme for 2016-2017.
4.0 How may this consultation affect me?
Everyone liable to pay Council Tax pays for the Council Tax Reduction Scheme
through their Council Tax payments. Therefore, it is important to get the views of
all Council Tax payers regardless of whether you receive Council Tax Reduction or
not.
Any changes to the scheme will directly affect working-age households receiving
Council Tax Reduction now or in the future.
Central Government set the scheme for pension-age applicants and they will not be
not be directly affected by any changes. For Council Tax Reduction, we treat you as
being of pension age if you or your partner is old enough to receive Pension Credit.

From April 2016, anyone born before 5th April 1953 will be considered to be of
Pension Age.
5.0 How to take part
The consultation will be from 15th September 2015 to 5th October 2015. You can
respond to the consultation:
By completing the form on-line at www.southnorthants.gov.uk
Or by completing the attached survey and returning to The Entitlements Team, South
Northants Council.
6.0 Discounted Options
In thinking about possible changes to the scheme the Council has considered a
number of options but has decided not to suggest them because of the impacts they
may have.
These discounted options are set out below:
Options
No change to current Council Tax
reduction scheme but to amend Council
Tax discount for unoccupied and
substantially unfurnished properties to 6
weeks at 50% and then zero thereafter
or zero discount from the outset.
Revise the Council Tax reduction scheme
to include further reducing support for
working age people

Reasons for not proposing option

Council strives to take find a fair balance
for all residents

Impact on some of the most vulnerable

people in the district and their ability to
pay increased levels of Council Tax.

Or by completing and returning the questionnaire to: South Northants Council,

Benefits team, The Forum, Moat Lane, Towcester, Northants. NN12 6AD
7.0 Next Steps
The Council has a legal requirement to adopt its scheme by 31 st January 2016 at the
latest to take effect from 1st April 2016. The timescales involved mean the
consultation must close on 5th October 2015.
The results from the consultation will then be analysed and a report will be presented
to the Councils elected members. We will listen to what residents tell us, and the
consultation results will be considered alongside other evidence and information for
the Council to make the final decision on the scheme to adopt.
Following the decision, results from consultation will be available our website.

Extra information
If you would like any further information please contact the Entitlements team on
01327 322140 or email hbctr@southnorthants.gov.uk

Consultation Questionnaire
Introduction
Since the introduction of CTRS in April 2013, no changes have been made to the
scheme for South Northamptonshire. We now need to consider a scheme for 20162017. We are seeking your views on the scheme.

Q1: Are you responding on behalf of yourself or an organisation?

Current scheme
Q2: Do you agree that the Council should continue with the current scheme
which provides the same level of financial support as the current scheme with
working age people paying at least 8.5% of their Council Tax to help to bridge
the funding gap?
Yes/No/Dont know
Other options
Q3: Do you think the Council should choose any of the following options to
help pay for the Council Tax Reduction scheme?
Increase Council Tax for all residents who are liable to pay Council Tax Yes/No/Dont
know
Reduce funding for other Council Services
Yes/No/Dont know
Use financial reserves
Yes/No/Dont know

Q4 Under its Welfare Reform agenda the Government are proposing a number
of changes to Housing Benefit from April 2016. Details are shown in the
Consultation Guidance document.
Do you agree that our Council Tax Reduction scheme should be amended to
reflect the proposed changes?
Yes/No/Dont know
Q5 Is there any further information or comments you would like to give
Please use the space below to make any comments