Transitional arrangements for the Localisation of Council Tax Benefit

Meeting: 
MQT on 2014-02-26
Session date: 
February 26, 2014
Reference: 
2014/1086
Question By: 
Tom Copley
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

What representations have you made to the Government to ensure transitional arrangements are in place for the localisation of Council Tax Benefit to reflect the greater cost of housing in London?

Answer

Answer for Transitional arrangements for the Localisation of Council Tax Benefit

Answer for Transitional arrangements for the Localisation of Council Tax Benefit

Answered By: 
The Mayor

Prior to the development of the new system the GLA, boroughs and London Councils engaged with Government - including through formal consultations - to encourage them to phase in the changes. When the new council tax support system was introduced in April 2013 the Government ultimately put in place transitional arrangements which allowed local authorities to limit the level of council tax payable by households who had previously been eligible for 100 per cent council tax benefit to 8.5 per cent of their bill. The majority of London boroughs took advantage of this transitional support scheme - and seven chose to maintain council tax support at the same levels as previously.

The level of council tax payable by individual taxpayers is dependent on their property band and the historic decisions on council tax levels taken by each borough. As bandings are based on property values in 1991 there is no direct correlation between council tax bills payable for individual properties and existing rent levels.