Scottish Government
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Help for vulnerable Scots
Over 500,000 people protected from increased council tax bills.
More than half a million Scots have been protected from UK Government cuts to Council Tax Benefit, Finance Secretary John Swinney revealed today.
Between April 2013 and March 2014 over 543,000 people were protected from increased council tax bills, and received an average weekly reduction of £12.79 through the Council Tax Reduction (CTR) scheme
Over 208,000 pensioners and 89,000 lone parents were also supported through the council tax measures.
The Scottish Government and Scotland’s Local Authorities introduced the Council Tax Reduction scheme following the UK Government’s abolition of council tax benefit in April 2013.
Eligibility for CTR is based on a number of factors, including income, savings, receipt of other benefits and financial status of partners.
Mr Swinney said:
“This Scottish Government has taken action to protect households across Scotland from Westminster’s welfare cuts.
“Thousands of Scots are paying a heavy price for the UK Government’s welfare reforms with some of the most vulnerable members of our society, including pensioners, families, lone parents and disabled people, struggling to pay their bills.
“In Scotland we have helped over 500,000 households who would otherwise have seen bills rise and living costs increase. In contrast, Citizens Advice say that council tax arrears are now the most common form of debt in the rest of the UK following the abolition of council tax benefit.
“With our partners in local government, we reached agreement to plug the estimated £40 million gap in funding from the UK Government for Council Tax Benefit successor arrangements in 2013/14. This commitment has been rolled forward again for 2014/15 and will allow us to continue to help Scotland’s most vulnerable people meet their council tax liabilities.
“This work with local authorities sends a very powerful signal of the sort of partnership approach we can develop with new powers in an independent Scotland.
“Only with the full levers of independence can Scotland properly capture economic opportunity and tackle inequality and poverty, and we can do so more efficiently and effectively than currently happens in the UK.”
The full statistical publication can be accessed at: www.scotland.gov.uk/299582
Under the UK Welfare Reform Act 2012, responsibility for assisting those who need help with their Council Tax in Scotland was localised to the Scottish Government and Scottish Local Authorities, with funding equivalent to forecast expenditure less 10%. In order to protect entitlement to support for vulnerable people, the Scottish Government and COSLA reached agreement to fill this 10 per cent gap in funding for 2013/2014.
Prior to its abolition, Council Tax Benefit was administered by local authorities on behalf of the Department of Work & Pensions (DWP), who met the costs of benefits and the administration of the system. Individuals in receipt of CTB received a Council Tax bill net of the benefit paid by DWP.
Under the Council Tax Reduction scheme, individuals now receive a Council Tax bill reflecting that their liability has been reduced.
