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Obscure ‘Council Tax Support’ Exemption Criteria

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Thursday, March 14, 2013
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KevinRaftery_

There could be a shock in store for the under privileged who are claiming the new Council Tax Support (council tax) from the supposedly 'fairer' Newcastle under Lyme Borough Council.

It appears that new measures to be brought in for benefit claimants on April 1st 2013 are obscure to the independent eye.

  1. The Civic Offices, Newcastle where there is a deliberation of what constitutes a Severe Disability Premium

    The Civic Offices, Newcastle where there is a deliberation of what constitutes a Severe Disability Premium

Currently the council are uncertain regarding the 100% Council Tax Support under the new scheme for Employment Support Allowance (ESA) claimants. Whereas paragraph 57.1A of the council's blueprint on the new tax specifically states that those who will be exempt from the tax will be those receiving a Severe Disability Premium within Employment and Support Allowance. 

However, there is no Severe Disability Premium in ESA, only 'Components' (Work-related activity or Support component). 

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It appears that when attempting to gain some clarification on this issue it became even more confusing.

A representative from the Borough Council said today:

"The new Council Tax Support only offers exemption from council tax for Pensioners and those on a Severe Disability Premium like High Rate DLA. Everybody else on benefits will have to pay 20% of the bill.

For example, if you are in one bedroom flat and claiming benefits your Council Tax bill will be in the region of £144 per year (or approximately £14 per month)."

Full clarification from Newcastle Borough Council regarding this matter is hopefully forthcoming sooner rather than later.

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6 Comments

  • Profile image for bellas

    by bellas

    Wednesday, March 20 2013, 6:55PM

    “On page 111 of the council tax 2013-14 support document it mentions a carer premium is available if you meet the criteria in schedule 3 (17) housing benefit regulations 2006 on page 112 carer premium is available this is newcastle under lymes own own council tax support 2013-14 pdf so why are they telling everyone that getting carers allowance will not make any difference to the 20% that we will have to pay? It quite clearly states that £33 is available as a premium”

  • Profile image for LongTallSarah

    by LongTallSarah

    Thursday, March 14 2013, 10:38PM

    “@Dazwozere
    Newcastle BC don't seem to have picked ESA Support Group as a route to support based on 100% Council Tax - from the regs on their website they're just going for severe disability premium and people entitled to a war disablement pension, war widow's pension or armed forces compensation scheme payment.

    Stoke-on-Trent have adopted ESA support group as entitled to support based on 100% rather than 70%, as well as 'SDP' and war pensioners, plus the under 25s on JSA complying with Jobcentre plus directions (benefit not sanctioned).”

  • Profile image for Dazwozere

    by Dazwozere

    Thursday, March 14 2013, 8:51PM

    “LongTallSarah, do you think that Newcastle borough will allow those on the support component of ESA to get 100% exemption? What is happening in Stoke regarding ESA, do you know?”

  • Profile image for LongTallSarah

    by LongTallSarah

    Thursday, March 14 2013, 8:23PM

    “I'd guess the Newcastle BC spokesperson was working on a single occupier of a Band A property - so 75% discount, then eligible for benefit for 80% of the remainder.

    But still not grasping that higher rate DLA for care doesn't automatically get you a 'severe disability premium'...”

  • Profile image for Snaggletoooth

    by Snaggletoooth

    Thursday, March 14 2013, 6:49PM

    “"Everybody else on benefits will have to pay 20% of the bill.
    For example, if you are in one bedroom flat and claiming benefits your Council Tax bill will be in the region of £144 per year (or approximately £14 per month)."

    My Band 'A' Council tax is £1000 a year,20% of which would be £200,not £144 as quoted - is there a band cheaper than Band A that they've not told us about?”

  • Profile image for LongTallSarah

    by LongTallSarah

    Thursday, March 14 2013, 5:57PM

    “Thanks for posting this Kevin - it highlights a very bizarre element of several local council's Council Tax Support Schemes, using eligibility for an element of means-tested benefits and calculations called the 'severe disability premium' (SDP) to define 'severe disability', and to give entitlement to a potential 100% reduction, rather than the usual 70% or 80% maximum for working age claimants.

    To be entitled to a 'severe disability premium' in the calculation of your benefit, you must meet three conditions. Firstly, you need to qualify for Disability Living Allowance at the middle or higher rate for care - arguably, a reasonable measure of severe disability. But the other two qualifying criteria aren't about the extent of your disability at all. For the SDP, you must also 'live alone' (although certain other disabled people, children and young people in your household are ignored) and not have a carer claiming Carers Allowance for looking after you.

    The consequence of adopting this benchmark is that you might have two people living next door to each other in identical properties, with identical health problems, both entitled to DLA at the middle or higher rate for care and receiving identical benefits. One has a single regular carer who claims Carers Allowance: the other has two carers who share the role, so neither provides sufficient hours of care to qualify for Carers Allowance. The first claimant doesn't qualify for a 'severe disability premium' and so can receive no more than 70% or 80% of their Council Tax bill in benefit, no matter how poor. The other, simply on account of having different arrangements to provide the same level of care, can receive up to 100%.

    If the intention was to devise a scheme to protect the entitlement of severely disabled people, it would have been easier for claimants and advisers to understand, and fairer, to link it to entitlement to DLA, or particular components of it.”

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