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The national Council Tax Benefit (CTB) scheme comes to an end on 31ST March 2013 to be replaced by a locally determined system of Council Tax Support (CTS). The funding made available by Government for the new scheme will be reduced by 10% nationally and cash limited. The aim of the new support scheme is to provide financial assistance to council taxpayers who have low incomes. Persons who are of state pension credit qualifying age are protected under the scheme in that the calculation of the support they are to receive has been set by Central Government. For working age applicants however the support they receive on the Isle of Wight is to be determined by the Council.
At this stage it is projected that the financial assistance for the scheme to be provided by Central Government will be some £1.9m less than the amount currently provided to support the existing Council Tax Benefit scheme. In order to fully or partly meet this funding gap the Council has to consider a reduction of council tax support paid to working age claimants.
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