§ The Parliamentary Under-Secretary of State for Work and Pensions (Mr. Chris Pond)Currently, people living in properties in council tax bands F, G or H have their council tax benefit restricted to the maximum amount payable for a band E property.
We have listened to representations from local government and others and we accept that this restriction is increasingly biting unfairly on people in larger properties. These will include pensioner owner occupiers who have worked hard all their lives to buy their houses, or large families in rented accommodation, who are not asset rich and unable to move to a property in a lower council tax band. Its removal will make council tax benefit fairer and easier to access. We have therefore decided to abolish the council tax benefit restriction from April 2004.
Local authorities also have the extra burden of having to collect small amounts of council tax from those who are required to meet the shortfall from their own resources. Abolishing the restriction will remove this burden too.
The introduction of pension credit has been designed in such a way as to ensure that some 1.9 million pensioners should qualify for more help, or help for the first time, with their council tax bills. We estimate some 310,000 pensioners will qualify for the first time.
Council tax benefit provides financial help to council tax payers on low income. However not all those who are currently entitled to help with their council tax bills are claiming this benefit. For example, although some 2.4 million pensioners already receive council tax benefit we estimate that up to 1.4 million pensioners may be missing out on the help to which they are entitled.
Local authorities have a statutory responsibility for promoting awareness of council tax benefit with their council tax payers. Many authorities have well developed take-up strategies while others rely solely on information issued with the council tax bill. However we want to do more to support them in this task and ensure more pensioners and those on low income are receiving the help to which they are entitled.
In the New Year the Government will he launching a campaign to raise the awareness of council tax benefit among those who are likely to be entitled and also their family, friends and carers. Working with local authorities, we will provide promotional material, and will develop guidance and advice to help ensure that procedures are in place to handle enquiries about entitlement and provide support for those, particularly pensioners, making claims.
124WSWe are already working in partnership with local authorities to improve performance in housing and council tax benefit administration. We now need also to focus on take-up, where take-up of council tax benefit lags behind that of other benefits.
There is much that the Department is already doing. The pension service is already inviting claims for council tax benefit when an application for pension credit is made, and we recently introduced a shortened claim form for pensioners applying for housing or council tax benefit to make claiming easier. The local pension service is working with local partners, including local authorities, to help reach the more vulnerable pensioners.
We also recognise and appreciate the pivotal role that the voluntary sector can play in promoting take-up of benefits. We know some older people prefer to deal with organisations such as Age Concern and Help the Aged. As part of developing a "third age" network we are building closer and more effective partnerships with the voluntary sector. The campaign will reinforce the valuable work they already do.
The measures I am announcing today will provide local authorities with more support from central Government in undertaking their statutory responsibilities, and build on the work already taking place at local level.
More generally, the Government are committed to ensuring that local authorities can provide decent local services without making excessive demands on local taxpayers.
My right hon. Friend the Deputy Prime Minister has announced that the Government will next year be providing total support to local authorities of £54.5 billion—up from £50.8 billion for 2003–04 on a like for like basis.
Given the scale of the Government's investment in local services and the scope for efficiency improvements in local government, the Government believe next year local authorities must aim to deliver council tax increases in low single figures. The Government are prepared to use its targeted capping powers next year if necessary to protect local taxpayers.