Full details have not yet been released by Government. Councils have been advised, however, that local schemes should support Government objectives for:
· creating the right incentives to get more people into work by ensuring that work always pays,
· protecting the most vulnerable people, and
· delivering fairness to those claiming benefit and to the taxpayer.
The Government has said that it wishes to protect pensioners in the scheme. For all other recipients, there is a requirement to agree local eligibility criteria.
Under the existing Council Tax Benefit scheme, the Council is reimbursed 100% for the amount of Council Tax Benefit it pays out to local claimants.
However, under the new system it will be given a specific sum by the Government to make support payments. This is likely to be 90% of the amount that is currently processed under Council Tax Benefit.
A detailed scheme to take account of the reduction in funding will now be developed and consulted upon, prior to the proposed scheme being submitted later in the year for approval.