Wednesday 26 September 2012 12.02pm
SC will get the money to pay the benefit from central governement as a general payment instead of central government paying it directly to SC for the single puropse of offsetting the lost income...but they won't get the full amount...around 90% only...so SC could charge those who were entitled to the benefit just a 10% charge and (all things being equal) things would be much the same except for the small council tax charge where previously there had been none.
I'm not guessing it is this simple in terms of overall local authority funding/spending but in terms of Council Tax benefit have I understood it correctly?
Yes, give or take, except that while it would be a 10% charge if they charged everyone, you have to factor in that they can't charge students or low-income pensioners.
I think it would be more like a 25-30% charge for the others, on average, not sure about the Southwark numbers specifically, obviously the worst affected are probably places like Eastbourne.
(and if they try to charge it to people who just physically can't pay, the council loses the money from non-collection anyway, and has the extra expense of legal and administrative costs in trying to recover it on top of that).