Changes are afoot in Council Tax support which have been driven down to local level by the government along with a 10% funding cut. Speaking purely as a debt collector it is a stupid policy to try and get people on low incomes to give some of it to the council when they are struggling to feed themselves.
Barnet Council are
consulting, in so far as they consult about anything, and they have done it in a biased way. They have produced options where cuts could be made and of course most people will blindly follow the suggestions. You need to throw the consultation questions in the bin and start with a clean sheet. Mr Mustard has written and a few days still remain for you to do the same. Feel free to borrow any of Mr Mustard's points that you agree with.
The
Guardian seem to agree with Mr Mustard. It is not a good idea to try and get poor people to pay small amounts of money. It just isn't practical.
Dear Sirs
I have read your consultation document of
24 October 2012 which I believe to be flawed.
It is predicated on the
assumption that the desired budget savings
all have to come from reducing the amount paid out to claimants. This is not the
case. There are two other options.
1. You could maintain CTS at its
current levels and increase Council Tax. That is after all the point of Council
Tax. We all pay in so that a safety net is provided to those, who for whatever
reason, need the help of society to have the necessities of life.
2. You
could cut other items of spending such as on Consultants.
2a. You could
become more efficient. I now hold an email in which a council officer says they
are prepared to "pay any price" for a certain service to be provided. That
bespeaks of wanton waste in council offices.
In so far as your features
are concerned I comment as follows, using your numbering.
Feature 1. Removing exemptions and discounts for empty
properties and second homes, and charging a premium on properties left empty for
2 years+.
An empty property makes very little call upon the
services of the council and so for it to have a discount is entirely reasonable
so I am not in favour of this being taken away. Occupiers of second homes call
upon the services of two authorities at different times and a discount of 10% is
quite low compared to the average 50% decrease in demand from such occupiers so
I am not in favour of any change here. I recall that you sent me a survey form
in respect of empty properties. I did have a property empty for 3 years as it
took me two years to get the council to agree the slope on the rear roof (you
have no policy about elegant mansard roofs and are content to led hideous
looking dormers spring up all over the borough) and then another year to
completely rebuild the house. During that time I was occupying and paying
Council Tax at the adjacent property and I am sure that similar situations occur
and that there is a good reason for long-term empty properties to remain empty.
If you published the results of that survey I would be pleased to be sent a
link to them. I am not in favour of any chance here either. I would prefer the
focus to be encouraging people with a carrot to bring properties back into use
not to hit them with a financial disincentive (the stick).
Feature 2: Working age claimants will be required to pay a
minimum contribution to their Council Tax.
This is the most
ridiculous idea. The examples in Appendix C show that a person on Jobseeker's
allowance might have to pay some council tax because they happen to be of
working age. Council Tax Support is about your financial needs not about how old
you are. I am absolutely against this feature not just because it isn't very
logical but also because the administrative cost of collecting small amounts
will be so high compared to the sums involved. The system should be based upon
financial need.
Feature 3: Removal of
the second adult rebate for working age claimants.
Some worked
examples of this would have been helpful. It sounds unfair to change
this.
Feature 4: Reducing capital
limits.
I note that people going into care homes are allowed to
retain up to £23,250 and therefore a reduction in respect capital savings of a
different type of societal support from £16,000 to £8,000 is a move in the wrong
direction.
Feature 5: Limiting the
level of support for higher banded properties to D or
E.
Somebody who used to be quite well off and has fallen on hard
times will try and hang on to a home that might have been theirs for decades.
They happen to need support which might only be for a few months to a year. They
will also have other bills which are greater for light and heat as the property
is large and so all you will do with this proposal is run up unpaid Council tax
debt. If the person has a low income then they won't be able to afford to pay
Council tax whatever size house they are in. I am against this
proposal.
Feature 6: A simpler system of non-dependant
deductions.
I am all in favour of simplification. I have looked
at Appendix D. I am not in favour of making adults in receipt of Jobseeker's
Allowance (not "Job Seekers Allowance" as it appears in the consultation
document) pay more, or those who are
working less than 16 hours per week, or those on maternity, paternity or sick
leave.
Summary.
In summary therefore I am against
all of your options as I think you have started from completely wrong financial
and moral standpoints and are running a flawed consultation.
Also of concern is that people whose benefit will be cut will only know
this in March, when their Council Tax bills come out for April.
That does not give people much time to find an extra £5 a week (or
whatever) from the limited income that they must only have in order to qualify for council tax benefit.
Update: Here is what our own Lord, Lord Monroe Palmer had to say on the subject in the House of Lords (Monroe makes, as usual, perfect sense)
My Lords, I was pleased to hear the noble Lord, Lord McKenzie, say in debate on the previous amendment that we must stand up for poor people. That is what I, in supporting the amendment of the noble Lord, Lord Best, ask noble Lords to do today. I hope that noble Lords from all sides of the House will do that.
Like other noble Lords, I welcome the £100 million. It is good, but it is transitional. It is good for this year, but it is not the solution for the future.
Points were made about the collection of small sums from people who could least afford it. Comparisons were made with the suggestion that a single-person discount should be varied if the local authority concerned wished to do so. Perhaps noble Lords should look at the simple arithmetic. Let us say that someone who is paying council tax lives in an authority where the council tax is £1,000 per annum. I will keep the figures simple. With a 25% discount, the single person will have a bill for only £750. If the local authority changed the 25% to 20%, instead of having a bill for £750, the council tax payer would have a bill for £800.
If their house was more valuable and highly rated, for example at £2,000, the council tax payer who got a 25% discount would pay £1,500. Under the 20% solution of the noble Lord, Lord Best, they would pay £1,600. One does not have to break one's brain to see that they would accept this. They would probably not even look at the calculation. They would see that on a bill of £1,000 they were paying £750 and now have a bill for £800. Perhaps they would realise that they had a bill for an extra £50. However, they are used to paying council tax, which does not normally stay the same every year. On £2,000 the bill would be £1,600 rather than £1,500.
This is money that local authorities such as my own, Barnet, would find pretty easy to collect. They collect it from those who are used to paying council tax. They may not like council tax-who likes it?-but they know that they have to pay it. Let us compare that with people who have not paid council tax. My noble friend Lord Jenkin said the situation was rather like that of the old community charge and poll tax. These people will suddenly get a bill because they will not get the whole of their discount. The bill could be £1 or £5 per week. How difficult will it be for any local authority to collect the small sums-and how will that be, in the words of the noble Lord, Lord McKenzie, standing up for poor people if those poor people have to pay that sum of money in what is already a hard society at the moment?
We have yet to hear from noble Lords on the Labour Benches. The noble Lord, Lord Best, suggested that they were against this change. My noble friend Lord Tope said that it would be inexplicable if they were. I try to see why they might have that attitude-if indeed they do. I hope that the noble Lord, Lord McKenzie, has changed his mind. If they do have that attitude, I ask why. The only solution I came up with-perhaps it is cynical-is that they want it to fail, and poor people to suffer. I cannot believe there should be a political motive to make people suffer to make a political point when the aim of the amendment moved by the noble Lord, Lord Best, is to protect poor people. I support the amendment.
Yours frugally
Mr Mustard