Council Tax

Lord Woolmer of Leeds Excerpts

Tuesday 9th July 2013 Lords Chamber

Asked By

[Lord Woolmer of Leeds]

To ask Her Majesty’s Government what assessment they have made of the impact on council tax arrears of the reduction in council tax benefit and the localisation of support for those in need.

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

My Lords, the design of local schemes and the assessment of their impact is the responsibility of local authorities. It is for authorities to design local council tax support schemes that will minimise the possibility of anyone falling into arrears on their council tax. Localisation gives local authorities the freedom to choose how to manage the funding reduction and they are best placed to understand their local priorities and the needs of their vulnerable residents. This reform enables them to take these local factors into account when deciding on levels of support.

[Lord Woolmer of Leeds]

I thank the Minister for that reply. Does she recognise the additional costs being borne by local authorities in seeking to collect council taxes from some of the lowest income and poorest communities in their areas for the very first time? These costs include setting the support scheme, counselling and advising, seeking to collect and even, in extremis, taking people to court. Would the Minister be willing to review, with the local authorities, what those costs actually are in the coming months so that there is agreement on the costs being borne by them in seeking to introduce that policy in their communities?

[Baroness Hanham]

My Lords, local authorities were well aware of what the council tax support was going to be. They were also well aware that their schemes should take into account any additional costs which came about as a result of the council tax support scheme. As with everything else to do with local authorities, we will keep this under review but it would not qualify for any consideration under new burdens because council tax is always something that the council has had to deal with.