The Welfare Reform Act 2012 became law in March 2012. The Act

introduces major changes to the benefits system, particularly for people of working age, but some of the changes will affect older people too. Almost half of Council Tax Benefit goes to people with the lowest-incomes and any cuts to it are bound to hit predominantly poorer families. The Government wants Councils to design schemes that protect vulnerable groups, pensioners are protected by the legislation. The Council Tax Benefit changes are meant to provide strong work incentives.

Keeping Council Tax support separate from the Universal Credit to be introduced in October 2013 and allowing it to vary across the country – undermines any gains in simplification and creates a post code lottery for the working age needing top-up benefits.

Parish Councils may need a significant Council Tax increase to offset the adverse impact of the changes on their tax base.

From April 2013, the Government will introduce a cap (or limit) on the total amount of welfare benefits that working-age people can receive, so that households on out-of-work benefits should no longer receive more in welfare payments than the average weekly wage for working households.

Based on current forecasts on wage levels in 2013, the cap will be set at around £500 per week for a couple and single parent households, equivalent to a £26,000 gross salary for someone in work and at around £350 per week for single adult households without children.

Families with a 'spare' bedroom will lose 14% of their housing benefit (approximately £12 per week) and those with two or more spare bedrooms will lose 25% (on average £22 per week).

It is estimated that 32% of existing working age Housing Benefit claimants will be affected.

B&NES Council want people to have their say over proposed changes to the new Council Tax Support scheme, although how much effect local views will have when the framework has been set by parliament is doubtful.

The Government is abolishing Council Tax Benefit across the UK from 2013/14 and will provide grants to local councils to design their own systems for rebating Council Tax to low income households. National funding for Council Tax support is being cut by the equivalent of £1.5 million for B&NES Council.

B&NES Cllr, David Bellotti (Lib-Dem, Lyncombe), Cabinet Member for Community Resources, said, "Our proposals for consultation aim to protect the most vulnerable people and do not affect pensioners or Council Tax discounts, such as single person discounts. B&NES wants to hear the views of all local residents about the proposals to develop a fair system in response to this new Government legislation."

Key points of the B&NES Council Tax Benefit changes are:

. Support will be paid up to a maximum of around 80% of a Band D property bill, regardless of whether the property is in a higher band – currently, up to 100% of Council Tax bills can be paid by the benefit.

. People with capital/savings of over £6,000 won't be eligible for Council Tax Support. Previously this was £16,000. This does not include the value of the property you are living in.

. Non-dependant deductions will be removed – this will benefit parents with young adults in the household as their

contribution won't be considered when calculating Council Tax Support. Child Benefit and Child Maintenance will be considered as income when calculating support, as they were before 2010.

Further details on the proposals can be found at http://www.bathnes.gov.uk/CTS">www.bathnes.gov.uk/CTS changes

A consultation is taking place until 2nd October 2012 on the proposals.

The Council will write directly to those people who currently claim Council Tax Benefit to explain how they can respond to the consultation and give their views.

All local residents, organisations and Parish Councils can also comment on the proposals by answering a general questionnaire found at: http://www.bathnes.gov.uk/">www.bathnes.gov.uk/ CTSchanges

Any resident without the internet can access the consultation for free via the self-service PCs available at the Bath One Stop Shop, The Hollies, Midsomer Norton, Riverside, Keynsham and Council Libraries.

Following the completion of the consultation a final policy will be developed which needs to be passed by a meeting of all Councillors before 31st January 2013.

Clearly, people of working age currently receiving Council Tax Benefit could see a significant reduction in their income.