Localising support for council tax in England: Consultation Response

The Localising Support for Council Tax in England consultation Opens in a new window was published on 22 July 2011.

The consultation presents a number of proposals on the implementation of a local council tax benefit system to replace the current national council tax benefit system.  If the proposals go ahead, the changes will take place from April 2013 and they will coincide with an immediate 10% funding reduction for local government.

The proposals present a number of significant concerns, including:

• The transfer of considerable financial risk to local government;
• The impact on some of the most vulnerable in society; and
• The impact on current claimants and work incentives. 

In our response, London Councils calls for this policy to be reviewed and sets out a proposal to incorporate council tax benefit within Universal Credit with a system of direct payments to councils.

Should the plans go ahead, our response calls for:

• A review of the current timetable for implementation,
• Maximum flexibility for local authorities to manage local schemes,
• Immediate clarification on expected funding allocations.

The consultation closed on 14 October 2011.