Proposed changes to 2022/23 Council Tax Reduction Scheme

Please note: this consultation closed 10 November 2021 - thank you to everyone who took part.

We evaluated and considered all of the feedback received during the consultation period. The changes to the Scheme were approved by Full Council in March 2022.


What we consulted on

Have your say on our proposed changes to the Council Tax Reduction Scheme.

If you are a Haringey resident liable to pay council tax (or who may become liable to pay council tax), we are consulting on proposals to change the current Council Tax Reduction Scheme (CTRS).

Our consultation closed on 10 November 2021.

Background

The government abolished Council Tax Benefit in 2013 and every council was tasked with designing its own local scheme to provide financial support to working-age residents on low incomes. The scheme is called the Council Tax Reduction Scheme (CTRS).

The scheme that Haringey adopted applied from 1 April 2013 and continued until it was replaced by the current scheme from 1 April 2019.

The council is proposing to change its scheme as it applies to working-age residents in the borough.

The council is required to consult on its proposals. If the scheme proposals are agreed, the council is required to have the new scheme in place by 11 March 2022 to start on 1 April 2022. If the proposals are not agreed, the current CTRS remains the same.

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What is Council Tax?

Council Tax is based on the value of your property (in one of 8 bands) on 1 April 1991. It part funds local services provided by the council. The level of Council Tax a household is required to pay is based on the defined band of the property they live in, less any discounts or exemptions for which they qualify.

As a London borough, we also collect money as part of the Council Tax for the Mayor of London to provide police, fire and public transport services. This amount is included in your council tax bill.

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What is the Council Tax Reduction Scheme?

The Council Tax Reduction Scheme is a way of helping people on low incomes pay their council tax bills.

Currently, working-age recipients are awarded a reduction of up to 100% of their Council Tax bill depending on their circumstances.

In Haringey, almost 27,000 residents currently receive some level of support under the Council Tax Reduction Scheme.

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Whose entitlement to Council Tax Reduction could be affected?

All working-age CTRS claimants.

The level of support provided to pensioners by the scheme is determined by the government, therefore if you are a pensioner the level of support you receive will be unaffected by the consultation proposals.

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Why are we proposing changes to the Council Tax Reduction Scheme (CTRS)?

We are proposing to change the Council Tax Reduction Scheme because we want to simplify and stabilise our scheme for working-age residents.

Therefore, we want to consult with the public on our preferred options, as well as the only alternative option which is to keep the CTRS as it currently is.

We want to strike a balance between the need to provide financial stability to residents whilst maintaining a scheme that is financially sustainable for the council’s wider budget.

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What are the council’s preferred options to change the Council Tax Reduction Scheme?

Our preferred options are:

(a) simplify our scheme by automating the claims process for residents who are awarded Universal Credit
(b) increase the backdating period from 6 to 12 months
(c) simply our scheme by writing it in plain English
(d) stabilise entitlement for residents by simplifying what happens when the Council Tax Reduction (CTR) entitlement changes by small amounts during the financial year

Case studies showing the likely effect of these options are under the sub-heading ‘Case Studies’ below. They show the likely effect on CTR entitlement for working age residents.

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Why are these the council’s preferred options?

  • Option (a) simplifying the claims process
    The proposed change is to add an additional way for residents to claim council tax support automatically when they start receiving Universal Credit. This would have a positive effect and reduce the difficulty and anxiety for residents who claim Universal Credit. It would also make sure as many people as possible get the support to which they may be entitled.
  • Option (b) increasing the backdate period
    The proposed change is to extend the maximum period an award of CTRS can be backdated to 12 months from 6 months. This would have a positive effect by ensuring backdated awards are not restricted to 6 months.
  • Option (c) re-writing the scheme
    It is proposed to simplify the scheme by publishing a revised version written in plain English and substantially reducing the number of pages. This would have a positive effect because the current scheme is complex and lengthy. Simplifying the language will make it is easier to understand and help to improve transparency and uptake.
  • Option (d) stabilising entitlement for working-age residents
    The proposed change is to stabilise what happens when Council Tax Reduction entitlement changes by a small amount. This would have a positive effect because frequent small changes in council tax payments can make household budgeting difficult for residents as they get a new Council Tax bill and payments every time their Council Tax Reduction Scheme amount changes.

If the proposal is implemented, we estimate most working-age residents would receive the same support as now with approximately 6% receiving a slightly smaller amount of support (average £32 per year/62p per week) and approximately 6% receiving a slightly higher amount of support (average £36 per year / 69p per week).

On balance, it is considered that this would have a positive effect on residents by making the scheme more accessible and reducing the number of bills. 

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Why would the proposed changes affect the level of Council Tax Reduction?

People who have frequent changes in circumstances that affect their Council Tax Reduction entitlement will continue to get the same level of support as they were previously.

The Case Studies below provide more information.

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How much will the preferred changes cost?

If the proposed changes are agreed, it is anticipated this will increase the cost to the council for the Council Tax Reduction Scheme by £10,000 in 2022/23. The total cost of the scheme is about £30m.

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Funding the preferred changes

If the proposals are accepted, the level of increase is expected to be accommodated within the Council’s current Medium-Term Financial Strategy.

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What alternative changes to the Council Tax Reduction Scheme were considered?

The consultation is seeking your views on the proposals. In the event the proposals are not accepted there will be no change to the CTRS.

  • Option (a) simplifying the claims process
    If the proposals are not agreed, the existing scheme rules will continue to apply as they are now, and residents on Universal Credit would need to make a separate application for Council Tax Reduction, as they do now.
  • Option (b) increasing the backdate period
    If the proposals are not agreed, the existing six-month maximum backdating period will continue to apply as it does now.
  • Option (c) re-writing the scheme
    If the proposals are not agreed, the existing complex and lengthy scheme rules will continue to apply as they do now.
  • Option (d) stabilising entitlement for working-age residents
    If the proposals are not agreed, changes in Council Tax Reduction entitlement due to small changes in circumstances will continue as they do now and this will result in new council tax bills being generated each time there is a change in entitlement.

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Case studies

The document below gives examples of the possible effect of the preferred options on working-age residents.

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Frequently Asked Questions

Please read our FAQs below. The document answers some frequently asked questions about the consultation proposals.

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How to have your say?

The consultation ran for 10 weeks from 2 September to 10 November 2021.

Residents were able to respond using our online form or ask us for a PDF version which included the case studies and FAQs.

We recommended reading the information on this page and in the case studies and FAQs before residents completed the form.

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What are the next steps?

Consultation results

We have evaluated and considered all of the feedback received during the consultation period. 

The consultation results summary (PDF, 169KB) will feed into a report which will be considered at Full Council on 1 March at which time a decision will be made on changes to the Local Council Tax Reduction Scheme from April 2022.

Indicative draft scheme

You can also view the council's indicative draft scheme (PDF, 692KB). This document is for information only and is not being consulted on.

Please note, in terms of content, this consultation is focused on:

  • simplifying the claims process
  • extending the backdate period
  • changes in circumstances

No other changes are proposed to the scheme other than simplifying the language in which it is written.

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Page last updated:

November 7, 2022