Council Tax: Support Schemes

Baroness Hollis of Heigham Excerpts

Monday 4th March 2013 Lords Chamber

[Baroness Hollis of Heigham]

My Lords, do the Government really understand the implications of asking people who have been on benefit and who have never so far paid council tax having to find between 20% and 30% of their council tax bill for the first time? Is the Minister also aware that, as a result, many local authorities are expecting that they will not be able to collect 70% of the monies outstanding from people who have hitherto paid nothing at all? Does she not agree that this is “poll tax mark two”?

[Baroness Hanham]

My Lords, I do not agree with the noble Baroness, Lady Hollis, that this is poll tax mark anything. This is a change to the council tax benefit scheme for individuals based on their individual requirements. Local authorities have plenty of support in what they are doing. They are perfectly able to make their own budgets fit to help with the 10% reduction and, as I have already said, if they have brought their council tax scheme within the transitional relief scheme, they also have transitional relief to help with that.