Option 2: Changing the maximum level of Local Council Tax Support from the current 91.5 per cent
The table below shows the potential annual reduction in the cost of the Local Council Tax Support Scheme to Rotherham Council if it changed the scheme in line with Option 2. A change to the maximum level of support affects all work age claimants which is currently 14,225.
| Option 2 | Reduction or increase in cost of scheme | Change in cost of scheme |
|---|---|---|
| Increasing the maximum level of Local Council Tax Support from 91.5 per cent to 95 per cent | Increase in cost | £526,000 |
| Reducing maximum level of Local Council Tax Support from 91.5 per cent to 90 per cent | Reduction in cost | £227,000 |
| Reducing maximum level of Local Council Tax Support from 91.5 per cent to 85 per cent | Reduction in cost | £976,000 |
| Reducing maximum level of Local Council Tax Support from 91.5 per cent to 80 per cent | Reduction in cost | £1.72 million |
| Reducing maximum level of Local Council Tax Support from 91.5 per cent to 75 per cent | Reduction in cost | £2.47 million |
| Reducing maximum level of Local Council Tax Support from 91.5 per cent to 70 per cent | Reduction in cost | £3.21 million |
Example 1
- The claimants are a couple and have two children aged three and twelve. The claimant is currently seeking work after losing his job and his partner works one day earning £82.00 per week. They also receive £296.37 Universal Credit and £42.55 Child Benefit – a total weekly income of £420.92.
- They live in a Band B property and without Local Council Tax Support they would have to pay £32.10 per week.
- Under the current scheme they receive £7.77 per week Local Council Tax Support leaving them with £24.33 per week to pay towards their Council Tax.
- If the Council changed the maximum Local Council Tax Support to 75 per cent they would receive £2.48 per week Local Council Tax Support leaving them £29.62 per week to pay.
- This means they would pay £5.29 per week more.
Example 2
- The claimant is a lone parent with a son aged three and is not in work. The claimant receives Universal Credit of £167.72, Child Benefit of £25.60 – a total income of £193.32.
- She lives in a Band A property and receives a 25 per cent single person discount. Without Local Council Tax Support she would pay £20.64 per week.
- Under the current scheme she receives £18.88 per week Local Council Tax Support leaving her with £1.76 per week to pay towards her Council Tax.
- If the Council changed the maximum Local Council Tax Support to 70 per cent, she would receive £14.45 Local Council Tax Support leaving her with £6.19 per week to pay.
- This means she would pay £4.43 per week more.