• What is Council Tax?
• Who has to pay Council Tax?
• What is Council Tax Benefit?
• What is Changing?
• Why are you changing the Council Tax Benefit scheme?
• What are the key changes in the Council Tax support scheme
• Who will these changes affect?
• Why does everyone of working age have to pay something towards their Council Tax bill?
• Who will be able to get the new Council Tax Support?
• How much will I have to pay?
• Will I have to re-apply?
• Will the Single Person discount change?
• What is Nottingham City Council doing about this?
• Is Nottingham City Council the only Local Council having to develop a Local Council Tax Support Scheme?
• Does this affect any other benefits I currently claim?

What is Council Tax?

• Council Tax is a local tax on domestic Properties.
• It is set by the Council based on property's valuation band.
• Each home is placed in one of eight valuation bands from band A to H, based on its value 1st April 1991.
• We are responsible for collecting Council Tax and this money funds other local services, including refuse collection, social services, environmental health and parks.
• Some money collected is passed to Nottinghamshire Police Authority and Nottinghamshire Fire and Rescue Authority.

Who has to pay Council Tax?

• Each home in Nottingham receives a Council Tax bill each year.
• Council Tax is a charge which is usually paid by the occupants of the property.
• If there is only one occupant in the home, they may be eligible for a Single Person discount.
• Council Tax is also paid by the property owner where the property is unoccupied.

What is Council Tax Benefit?

• Council Tax Benefit is a national welfare Benefit paid to customers who are on a low income, on income support or who receive Job Seeker's Allowance.
• Entitlement to Council Tax Benefit depends on your personal circumstances and the national rules set by government.
• If you're entitled to Council Tax Benefit, your Council Tax bill is reduced by the amount of Council Tax Benefit you receive.

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What is changing?

• From April 2013, Central Government is ending the national Council Tax Benefit scheme.
• Central Government will no longer set all the rules on who will get help with their Council Tax.
• Every Council will have to replace it with a new scheme.
• This new scheme will be called Council Tax Support.
• The Government is giving Councils less money to pay for their new schemes. The cut will be 10% of the current expenditure and will not be increased even if the number of people claiming or the Council Tax charge goes up.

Why are you changing the Council Tax Benefit scheme?

• The Government has decided to end the current Council Tax Benefit scheme and local Councils must implement a Council Tax support scheme with significant reductions in funding.
• Nottingham City Council could have up to £6 million less available to fund the new scheme next year.
• This means that we will need to make some difficult decisions about who gets Council Tax Support and how much.
• Further savings will be required over the next few years to fund the scheme.

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What are the key changes in the Council Tax support scheme?

The Council Tax Support Scheme for 2013/14:

• There is now a maximum limit on the amount of council tax support that can be paid to all working age people. The maximum amount of help that working age households may get will be limited to 91.5% of their total Council Tax bill for 2013/14

This means that:

• All working age households will pay at least 8.5% of their Council Tax bill in 2013/14, even those that have not had to pay anything before because they received 100% Council Tax Benefit.

After consultation with local people, the Scheme also includes the following additional features:

• The Second Adult Rebate has been removed (previously, if a resident could afford to pay their Council Tax, but lived with someone on a low income, who was not their partner, they may have been able to get up to 25% off their Council Tax bill).
• It will still be possible to backdate claims in specific circumstances
• The minimum level of Council Tax Support a household can receive will be set at 50p per week

Who will these changes affect?

• All current working age Council Tax Benefit customers will be affected by these changes.
• All working age customers will see a reduction in their entitlement under the new Council Tax Support scheme.
• It is likely that all working age customers will have to pay something towards their Council Tax.
• Pensioners will not be affected by these changes - Although pensioners will move onto the new benefit, they will be protected and will not have their benefit reduced under the new scheme.
• The protection given to pensioners means working age claimants could see reductions in their current entitlement by at least 8.5%.

Why does everyone of working age have to pay something towards their Council Tax bill?

• Central Government is cutting the amount they pay local authorities towards help with Council Tax.
• In Nottingham the cut is equivalent to cutting present levels of Council Tax Benefit by 18%.
• Nottingham City Council cannot provide resources to make up for all of this cut so people of working age will receive less Council Tax Support than under the present Council Tax Benefit scheme.
• The Council will seek to spread the impact of this cut as fairly as possible.
• No claimants of working age will receive help that covers all their Council Tax; everyone will have something to pay.

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Who will be able to get the new Council Tax Support?

• Everyone one who is already receiving Council Tax Benefit will be assessed for the new Council Tax Support.
• It is likely that most people who qualify for Council Tax Benefit will get some Council Tax Support.
• Anyone liable for Council Tax can apply for Council Tax Support. They will be assessed in the same way as those customers who will be moving from Council Tax Benefit.

How much will I have to pay?

• All working age households will pay at least 8.5% of their Council Tax bill in 2013/14, even those that have not had to pay anything before because they received 100% Council Tax Benefit. 
• The amount of Council Tax Support you are entitled to will be shown on your Council Tax bill.
• Pensioners will not have to pay more than they do now.

• The table below gives an idea of the lowest amount of Council Tax that households will have to pay if they get maximum help (i.e. maximum help is 91.5%).  This is only intended as an illustration.  Some households may need to pay more, if they do not qualify for the maximum amount of support due to their personal household and financial circumstances and dependant upon the future Council Tax bands that are set.

• People in homes with bands higher than B will have more to pay.
• You can find out which Council Tax band you are in here.
• Note: These figures are provided as estimates only and may differ to the actual.

Will I have to re-apply? 

• If you currently receive Council Tax Benefit you will not have to re-apply under the new scheme.
• You will automatically be re-assessed using the new rules and sent a decision letter with your new Council Tax bill, March 2013.
• New Customers can find out more here

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Will the Single Person discount change?

• No. The 25% single person's discount will not change.  A full list of the current Council Tax discounts and exemptions is available online at www.mynottingham.gov.uk/counciltax

What is Nottingham City Council doing about this?

• Nottingham City Council debated the fairness of the Government's proposal at a meeting of Full Council on 10 September 2012 including how the changes would affect some of the most vulnerable people in Nottingham. This was with a view to lobbying the Government to re-think its position.
• We have consulted with you on proposals for a new scheme which sets out how we will take on this new responsibility for Council Tax Support.
• We are committed to ensuring we lessen the impact on the most vulnerable residents. However if we do more to provide extra Council Tax Support for families, households with disabled people and people who receive war pensions than our proposals set out, this will mean the amount of Council Tax Support for all other working age households would need to be reduced.
• The Council are working with the Advise sector to raise awareness and ensure partners prepared for the changes. We are writing to people to explain how they will be affected and we are helping landlords to understand who may be affected, so they can help.

Is Nottingham City Council the only Local Council having to develop a Local Council Tax Support Scheme? 

• No. All authorities in England who currently administer the national Council Tax Benefit system are having to do this. 

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Does this affect any other benefits I currently receive?

• No. These changes only affect Council Tax Benefit.  For information about other welfare reforms such as the changes to Housing Benefit please refer to the  Welfare changes - What you need to know [227kb] booklet.  If you want to find out more about these changes and the introduction of Universal Credit, visit www.dwp.gov.uk/welfareform