UK Parliament / Open data

Welfare Reform Bill

Proceeding contribution from Lord Freud (Conservative) in the House of Lords on Monday, 12 December 2011. It occurred during Debate on bills on Welfare Reform Bill.
Beware Greeks. My Lords, noble Lords will be aware from previous debates that we are proposing to abolish council tax benefit before the introduction of universal credit and replace it with local schemes of support. Localising support for council tax is part of a wider policy of decentralisation, which will give councils increased financial autonomy and a greater stake in the economic future of their local area. Localisation also reintroduces the link between council tax levels and the costs of providing support, thus reinforcing local financial accountability. This reform will give local authorities a significant degree of control over how a 10 per cent reduction in expenditure on the current council tax benefit bill is achieved, enabling them to balance local priorities and their own financial circumstances as they see fit. This saving is an important contribution to the Government’s vital programme of deficit reduction. We need to ensure that localisation supports the improved work incentives that universal credit will bring. However, the Government believe that the key principles required to incentivise work can be delivered through local schemes with the help of technical guidance provided by central government. Local authorities will have a greater stake in getting people back into work than ever before. The Department for Communities and Local Government has consulted on the proposal for local schemes in England. The consultation closed on 14 October. There were a very high number of responses, demonstrating an appetite among local authorities and other stakeholders to come up with practical solutions to the outstanding issues. The Government will publish a formal response shortly and plan to introduce legislation this Session through a local government Finance Bill. The time has passed for the inclusion of council tax benefit within universal credit. The universal credit programme is now too advanced for such a change to be made for the launch of universal credit without endangering the timetable. However, the Government understand the importance of allowing local authorities to run schemes that are simple to administer. We are considering how data flows from universal credit and pension credit will support this aim and help to ensure that people can easily claim local council tax support alongside DWP benefits. I shall turn to the specific questions raised by my noble friend Lord German, which were reinforced by the noble Lord, Lord McKenzie, about the move of council tax benefit to both English local authorities and the devolved Administrations. CTB is not being devolved. Under Clause 33, it will be abolished and funding made available for local schemes in England. The devolved Administrations will be funded through the Barnett formula to bring forward new schemes within their existing competence. If a future Government so decided, Clause 11, which covers housing costs, is sufficiently broad to give legislative cover to include support for council tax costs in universal credit. Scotland and Wales already have the executive powers to establish schemes based on applying discounts to council tax. I can assure my noble friend that social security remains absolutely reserved as a UK matter and that localisation funding does not affect this. I thank the noble Baroness for raising these issues.
Type
Proceeding contribution
Reference
733 c1067-8 
Session
2010-12
Chamber / Committee
House of Lords chamber
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