Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Council Tax Benefit Under Threat?

with 15 comments

 Will Universal Credit be a good system?

The Guardian reports today (Here.) that it is being “strangled at birth”.

 For the sake of saving rather less cash than he has set aside for creating the new credit, Mr Osborne seriously undermined it by handing sweeping discretion over council tax rebates to local authorities, together with a sum of money which he freely admits will be 10% short of what is required for funding them properly. In response to that shortfall, new rules will claw back the cash with such aggression that it will pay less to work. And it will not be one set of rules, but different rules in different parts of the country. No universal credit – no matter how well-designed – can achieve a smooth fit with all of these rules at once.

This is no minor detail. Council tax benefit is the one means test applied to just about everyone who is poor – the old, the young, the sick, the well, homeowners and tenants alike. This one botched decision condemns all these groups to continue to live with a system that frustrates good intention and flies in the face of the common sense that Mr Duncan Smith promises.

 

This is a recipe for another Poll Tax conflict.

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Written by Andrew Coates

October 27, 2010 at 9:12 am

15 Responses

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  1. http://www.times-series.co.uk/news/8478155.Slum_slur_rejected_by_estate_s_residents/

    CLAIMS by a senior Tory figure that some of the borough’s estates have become “disgusting slums” have been rejected by angry residents and opposition councillors.

    During a debate on housing benefit cuts and changes to tenancy durations of people living in social housing, Totteridge ward councillor Brian Coleman launched a stinging attack on the thousands of residents living on the Grahame Park and West Hendon estates.

    He likened the areas to facilities more associated with third world countries, while claiming they had become “ghettos”.

    In his outburst at cabinet last week, he said: “Long term social housing creates slums.

    Barnet

    October 27, 2010 at 3:26 pm

  2. you cannot expect someone on jobseekers to pay council tax,its clearly ridiculous.locall there has been great squandering of local payers money on dubious over the top extravagant constructions.including importing tv celebrities in ribbon cutting photo oppertunities.

    it would be interesting to see how many locals will enter into this blatant waste and how the council can justify cuts locally.

    anyone who can remember the poll tax where a few pounds were collected from benefits’,this was later acknowledged to have cost more to collect then what was paid,but cut into peoples budgets’.

    ken

    October 28, 2010 at 4:38 pm

  3. Vodafone’s £6bn tax bill let-off and £7bn benefits cuts
    This is Money has ended up starring in a campaign comparing Vodafone’s £6bn tax bill let-off with the benefits cuts.

    And today this has taken a new turn with protesters staging sit in protests at Vodafone stores – forcing them to close.

    Kyron

    October 30, 2010 at 12:07 pm

  4. […] Council Tax Benefit Under Threat? […]

  5. […] Council Tax Benefit Under Threat? […]

  6. If people on benefits have to pay council tax it can be viewed as a reduction in JSA or ESA since the government would be giving benefits only to take some away again which is an effective reduction in benefits given. Either that or its meant to come from lha/hb but with the same result. However like all bullies the chancellor and his tory gang are too cowardly to cut JSA/ESA directly and instead impose a stealth tax on the poorest in society. I call it a stealth tax because they are not saying people on benefits will have to pay some council tax even though it is pretty clear that will be the likely result.

    It is also seems very much like the poll tax since it is unavoidable (unless you are homeless) and is paid regardless of income. Although as both shelter and crisis have said many people will be made homeless!

    Tim

    November 18, 2010 at 1:09 pm

    • It is Poll Tax 2.0 – my belief is the reason why Council Tax benefit isn’t going to be brought into the Universal Credit is their plans to abolish the Council Tax system under the next phase.

      Including it will only raise suspicion. They must grab the publics confidence.

      The VAT increase of 2.5% is to compensate for the low(ish) rate tax (similar to the 2.5% VAT increase back then slightly before it was abolished) system of the Universal Credit before they decide to increase it 12 or 18 months later.

      Read more here: http://www.workprogramme.org.uk/20101115902/poll-tax-2.html

      Work Programme

      November 18, 2010 at 1:35 pm

      • Poll Tax 2.0 for who, Work Programme. Most benefit claimants receive £15-20 a week Council Tax Benefit. So is this another £15-20 a week to be funded out of this £65.45 (£51.85 for under 25s a week) on top of the LHA reductions, caps 10% reduction in Housing Benefit after a year. What is this “Universal Credit” going to be paid in – infinite magic fairy beans?

        Road Runner

        November 18, 2010 at 2:11 pm

      • But the Poll Tax brought up the Council Tax which is just as unjust if not more. Before that we had the Rates, i.e a payment made on the rateable value of a property with rebates for low earners/benefit claimants. A much fairer system which incidentally, this system still operates in Northern Ireland. For all we know the Poll Tax was just a Trojan Horse to bring in the Council Tax.

        Road Runner

        November 18, 2010 at 2:24 pm

      • But the Poll Tax brought up the Council Tax which is just as unjust if not more. Before that we had the Rates, i.e a payment made on the rateable value of a property (the more your property/property “portfolio” was worth the more you paid) with rebates for low earners/benefit claimants. A much fairer system which incidentally, this system still operates in Northern Ireland. For all we know the Poll Tax was just a Trojan Horse to bring in the Council Tax.

        Road Runner

        November 18, 2010 at 2:26 pm

      • Under the iniquitous Council Tax “banding” system a household living in a £40million mansion in the Derbyshire countryside pays only 2 and a half times more than a household occupying a one bedroom flat in Ipswich – is that fair?

        Road Runner

        November 18, 2010 at 2:36 pm

      • Yes.

        Work Programme

        November 18, 2010 at 3:10 pm

      • lol WP – are you serious?!?! a single person living in a damp flat in ipswich should pay just under half what multi-millionaires in a country mansion and their mates are paying? With those kind of policies you should join the condemned – they understand fairness – NOT!

        Unison

        November 18, 2010 at 3:29 pm

      • I would accept a place in the ConDem Government lol

        Like you say, I wouldn’t want to be “a single person living in a damp flat in ipswich” when I could be living it up at taxpayers expense!

        Work Programme

        November 18, 2010 at 5:40 pm

      • … they don’t want the exploitation to end… they want to become the exploiters.

        Ferengi

        November 18, 2010 at 5:58 pm


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