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The Council Tax Reduction Scheme – Fund it or Cut it? Labour Cabinet to debate today

by danielbarker on 17 December, 2014

Walsall Council’s Labour Cabinet meet tonight to discuss amongst other things a report on the Council Tax Reduction Scheme.

This scheme is a discount that people on low incomes can claim in order to reduce the amount of Council Tax they pay. Labour’s new bosses have decided that this scheme should be looked at as part of their £86 million package of cuts over the next four years.

Back in September they decided to consult on four options as part of their much heralded public consultation.
1.Option 1. Reduce the benefit by 25% The Council would still need to find another £5.4 million to fund it. Claimants would have to pay more Council Tax
2.Option 2. Reduce the benefit by 20% The Council would still need to find another £5.8 million to fund it. Claimants would have to pay more Council Tax
3.Option 3. Reduce the benefit by 10% The Council would still need to find another £6.7 million to fund it. Claimants would have to pay more Council Tax
4.Option 4. Fully fund the benefit as the Lib Dem/Tory Coalition administration has done in the past 2 years. Claimants would not have to pay more Council Tax and the Council would have to find £7.7 million to fund it.

Under the Lib Dem/Tory Coalition administration in 2013/14 Walsall’s means tested Council Tax Reduction Scheme helped 35,000 households in the town on low incomes meet their Council Tax liabilities. Those supported households included 15,271 pensioners and 19,676 working age households. Of the working age households 4,516 were disabled and there were 4,793 with children less than 5 years old.

It will be interesting to see what Walsall’s Labour bosses come forward with as a recommendation.

Will it be Option 1:2:3 or 4?

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