Council Tax: Support Schemes

Lord McKenzie of Luton Excerpts

Thursday 12th June 2014 Lords Chamber

Asked by

[Lord McKenzie of Luton]

To ask Her Majesty’s Government how they propose to assess the impact of council tax support schemes on vulnerable groups and on work incentives.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Stowell of Beeston) (Con)]

My Lords, the best councils are using local council tax support schemes to help get people back into work. They are increasing work incentives while protecting the vulnerable. An independent review of the schemes will be carried out, as required by the Local Government Finance Act 2012.

[Lord McKenzie of Luton (Lab)]

My Lords, I thank the Minister for that reply. Is evidence not emerging already from the Joseph Rowntree Foundation and Citizens Advice, and through FoI requests, about the misery that these arrangements are causing, by deliberate acts of government such as the transfer of responsibilities—underfunded from day one—and continuing cuts to the ongoing budgets of councils? Is it not the case that, in the current year, some 2.3 million people in low-income families will pay an average of £149 more a year in council tax than they would have under the council tax benefit system? This year, a further 70,000 families will have their support cut for the first time and nearly 400,000 disabled people will see their council tax increase. All this is fuelling a debt crisis and is a job creation programme for bailiffs. How is this contributing to the creation of a fairer society?

[Baroness Stowell of Beeston]

My Lords, I notice that the noble Lord did not inform your Lordships that council tax bills more than doubled under his Government, as did spending on council tax benefit, rising to more than £4 billion, which equated to £180 for every household. Action was therefore essential. We have cut council tax bills and changed the benefit system for council tax so that people are supported properly in their local areas by their local authorities, which are responsible for setting and collecting council tax. Those authorities now have a vested interest in supporting local people back into work. The latest unemployment figures show how our overall approach to the economy is working.