Local Government Finance Bill

If I can correct just one small point, the figure is £420 million for England, although the sum for the United Kingdom as a whole is larger. The hon. Lady is quite right that there is to be a reduction in the funding of council tax benefit support. That is not in dispute. My point—and the point the Government are making—is that local authorities have additional income streams open to them in later parts of the Bill. They also have the opportunity to tailor their schemes to suit their local circumstances, and if they choose to draw resources from other parts of their income streams, it is open to them to do that. Let me turn to amendments 49 and 56. It is unclear how a local authority could take into account the impact of claimants who were receiving council tax benefit before the introduction of a local scheme. For example, that would require a local authority to know, several years after the implementation of the reform, whether a person would have been entitled to claim council tax benefit under the old system and whether a change in circumstances meant that a person would no longer be eligible at all. The Bill already provides for local authorities to make transitional provision as they see fit, following changes to their schemes or the introduction of a new scheme. That seems a far better way of proceeding. Amendment 67 would require authorities to publish, as part of the scheme, the steps that they would take to ensure that people were informed of their entitlement and what assistance they would be offered. That is a sensible requirement, but paragraphs 2(1) and 2(5) of new schedule 1A to the Local Government Finance Act 1992, inserted by schedule 4 to the Bill, already require the authority to set out the classes of persons who are entitled to a reduction, and the procedure for making an application. The provision that the amendment seeks to introduce is therefore already part of the legislation. Local authorities will want to publicise the scheme in a manner that ensures that those eligible for support claim what they need to in order to avoid going into arrears with their council tax. Points have been made about the cost of publicity and of introduction. The Government do not think it right to stipulate how local authorities should publicise the scheme; it is for them to decide, and a one-size-fits-all set of regulations would certainly place unnecessary requirements on them. Local authorities are best placed to decide how to publicise information about their own schemes. Amendment 68 would require a local authority to consult charities and organisations that provide advice on benefits or represent older people. However, local authorities already have a duty to consult other persons who are"““likely to have an interest in the scheme””." The Government's intention to protect pensioners from any reduction in support as a result of the reform, using the powers in the Bill, has already been made clear. It has been welcomed by the shadow Secretary of State for Communities and Local Government and by the hon. Member for Warrington North, who spoke on behalf of the Opposition in today's debate. As the system for pensioners will be prescribed at national level, it is unclear what the benefit would be of prescribing further consultation at local level with groups representing pensioners. To prescribe the categories of organisations to be consulted would be restrictive and unnecessary. Many local authorities already have good consultative schemes and, in any case, people are not backward in coming forward to put their point across. Amendment 71 states that the Secretary of State should have regard to the impact of any guidance on those of pensionable and working ages, and those on benefits, particularly disability benefit. Again, however, the Government have already made clear their intention to use this guidance to set out the importance of supporting work incentives through the design of local schemes. We will consider how best to ensure that local authorities are aware of their duties in relation to vulnerable groups. It is unclear what the amendment would add to the clear commitment that the Government have already made. Taken together, amendments 57, 58, 59 and 60 would delay the start for localising council tax reductions. My hon. Friend the Member for Portsmouth South (Mr Hancock) asked me why I thought that should be resisted. I believe it should be resisted because it is right to get the scheme in place quickly, to ensure that our programme of deficit reduction proceeds unhindered. It is an essential part of the Government's programme that that saving should be made. Any hon. Friends or other colleagues around the House who might wish to unravel that programme of deficit reduction need only look a little way across the channels—Irish or French—to see the consequences of so doing. The Government are clear that this reform needs to be implemented in 2013, to secure the agreed savings. The savings from the localisation of council tax benefit will make an important contribution to our deficit reduction plan. I have already made the point as clearly as I can that that deficit reduction plan is essential, and that the Bill provides powers for local authorities to create other income streams by tackling discounts and exemptions. There will be a possibility for them to do that, if they so choose. As for ensuring that the timetable is adhered to—the right hon. Member for Greenwich and Woolwich (Mr Raynsford) raised some issues in this regard—we are already working with local authorities and IT suppliers to identify how we can ensure that any new processes and systems are in place for April next year. We are committed to ensuring a steady flow of information to local government on our plans for delivery and the framework in which local authorities will operate. We will also look at what tools we can provide for local authorities to help them in their planning.