Around 3,000 households in East Devon would be better off if proposals approved
Low income families in East Devon could benefit by an estimated £270,000 in extra support towards paying their council tax in a scheme which is being consulted on from Thursday 12 September.
East Devon District Council’s Cabinet has given the green light to consult on a draft Council Tax Reduction Scheme which proposes to increase the amount of council tax support for low income working age households. Pensioners will not be affected by the proposals.
Under the current scheme, low income working age households receive a council tax reduction which involves a lengthy means test with complex legislation.
The council is looking to significantly simplify the reduction scheme by putting more money into the current system and introducing ‘Income Banded’ discounts. This means that council tax discounts of 85%, 70%, 50% and 25% would be awarded depending on a claimant and partner’s weekly income and the number of dependants living in the household.
Under the proposed draft scheme, 92% of claimants – around 3,000 households - many of whom are families adversely affected by recent welfare reforms, would be better off.
Cllr Ian Thomas, the district council’s portfolio holder for finance, said:
East Devon is among just a handful of councils nationally which is proposing to increase support for low income families to help them pay their council tax.
The draft scheme is also more compatible with Universal Credit which is a means-tested benefit for households who are on a low income. Universal Credit full-service, which was introduced in East Devon in July 2018, replaced six benefits including housing benefit, income support and income based jobseeker’s allowance.
The consultation will be sent to key stakeholders including the Citizens Advice Bureau and is open for comment.
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Following the consultation, there will be a detailed review of the draft scheme taking into account the comments received.
The final scheme will be brought back to the district council’s Cabinet in January 2020. If agreed by the council, the new scheme will be introduced from April 2020.