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Council Tax Benefits

Volume 489: debated on Wednesday 11 March 2009

To ask the Secretary of State for Work and Pensions how many and what proportion of (a) housing benefit and (b) council tax benefit recipients were (i) pensioners and (ii) of working age in each local authority area in each of the last 24 months; and if he will make a statement. (260113)

The latest available information has been placed in the Library.

Information is not available broken down by month.

To ask the Secretary of State for Work and Pensions how many children living in poverty live in households which are not eligible for (a) full and (b) partial council tax benefit. (261558)

[holding answer 6 March 2009]: Estimates of the population entitled to council tax benefit among children in households below average income are not available.

The latest estimates of take-up of and entitlement to means-tested benefits in Great Britain, covering income support, pension credit, housing benefit, council tax benefit and jobseeker’s allowance (income based) are published in the report “Income Related Benefits Estimates of Take-Up in 2006-07”. This report has been placed in the Library.

To ask the Secretary of State for Work and Pensions how many (a) pensioners and (b) people of working age are (i) in receipt of council tax benefit and (ii) eligible for council tax benefit and live in households where no one is eligible to pay income tax. (261559)

[holding answer 6 March 2009]: The information requested is in the table.

Total number of recipients of council tax benefit in Great Britain aged under/over 60: August 2007

Number

Number of benefit units in receipt of council tax benefit

5,079,080

Number of benefit units in receipt of council tax benefit where claimant aged 60 and over

2,528,950

Number of benefit units in receipt of council tax benefit where claimant aged 59 and under

2,550,140

Notes:

1. The data refer to benefit units, which may be a single person or a couple.

2. The figures have been rounded to the nearest ten.

3. Figures for any non-responding authorities have been estimated.

4. Council tax benefit totals exclude any second adult rebate cases.

5. Totals may not sum due to rounding.

6. From February 2007, DWP has been collecting more detailed HB/CTB data electronically from local authorities. Over time this will improve the accuracy, timeliness and level of detail available in the published statistics. However, until the new data have been fully quality assured to National Statistics standards, the most recent summary statistics available are for August 2007.

7. Administrative HB/CTB Information contains two age breakdowns on the basis of the age of individual who makes the claim (i) those under the age of 60 and (ii) those aged 60 and over. Therefore ‘Pensioners’ refers to recipient benefit units where the person who claimed is aged 60 or over: the partner may be under 60.

Source:

Housing benefit and council tax benefit management information system quarterly 100 per cent. caseload stock-count taken in August 2007.

Analysis of the Family Resources survey for 2006-07 suggests that 61 per cent. of pensioners entitled to council tax benefit are not liable to pay income tax.

For people of working age 81 per cent. of families entitled to council tax benefit are not liable to pay income tax.

These estimates refer to Great Britain and are based on survey data and modelling so are subject to sample variation and to other forms of errors.

To ask the Secretary of State for Work and Pensions how many (a) pensioners and (b) people of working age at each household income level are (i) in receipt of and (ii) eligible for council tax benefit. (261561)

[holding answer 6 March 2009]: The table gives the available information on council tax benefit recipients and eligible population by household income bands, for 2006-07 in Great Britain.

Percentage

Banded weekly household income

(i) Recipients of council tax benefit

(ii) Entitled population to council tax benefit

(a) Pensioners

Less than £100 a week

2

4

£100 but less than £200

36

38

£200 but less than £300

40

36

£300 but less than £400

16

15

£400 but less than £500

4

4

More than £500

2

4

Total

100

100

(b) Non Pensioners

Less than £100 a week

4

7

£100 but less than £200

33

26

£200 but less than £300

34

29

£300 but less than £400

16

17

£400 but less than £500

7

10

More than £500

6

10

Total

100

100

Notes:

1. The data refer to household incomes. Note that a household income can be higher than the income of the family receiving council tax benefit, as a household can contain two or more families.

2. The figures are presented as proportions because point estimates of the entitled population are potentially misleading given the presence of sample bias.

3. Council tax benefit totals include second adult rebate cases.

4. Pensioner families are defined as where at least one person aged 60 or more.

Source:

Family Resources Survey Data 2006-07.

To ask the Secretary of State for Work and Pensions what the 2009-10 personal allowance for council tax benefit is for (a) single people aged under 25 and lone parents aged under 18, (b) single people aged 25 to 59 and lone parents aged 18 to 59, (c) single people aged 60 or over, (d) couples where both partners are aged under 18, (e) couples where the older partner is aged 18 to 59 and (f) couples where the older partner is aged 60 or over. (261951)

[holding answer 9 March 2009]: The information is in the table.

Council tax benefit personal allowance rates for 2009-10

£

Single people aged under 25

50.95

Lone parent aged under 18

0

Single people aged 25-59 (or any age entitled to main phase ESA)

64.30

Lone parents aged 18-59

64.30

Single person/lone parent aged 60-64

130.00

Single person/lone parent aged 65 or over

150.40

Couples, both partners aged under 18

0

Couples where older partner is aged 18-59

100.95

Couples where one or both are aged 60 or over, but both are aged under 65

198.45

Couples where one or both are aged 65 or over

225.50

Notes:

1. Nil rate quoted as a person must be aged 18 or over in order to be liable for council tax.

2. Rates quoted above do not include any additional allowances which might be applicable, for example in respect of children.

Source:

Following the uprating statement to Parliament made by right hon. Tony McNulty MP on 11 December 2008, DWP issued a press release giving details of the benefit uprating:

www.dwp.gov.uk/mediacentre/pressreleases/2008/dec/NewBenefitRates.pdf

Local authorities were informed of the new rates in HB/CTB Circular A27/2008, a copy of which is at:

www.dwp.gov.uk/housingbenefit/user-communications/circulars/2008/a27-2008.pdf

To ask the Secretary of State for Work and Pensions what the minimum level of (a) weekly and (b) annual household income is at which a household is no longer eligible for (i) full and (ii) partial full council tax benefit for (A) a single pensioner, (B) a pensioner couple, (C) a working-age single person, (D) a working-age couple, (E) a lone parent with one child and (F) two parents with one child. (262020)

[holding answer 9 March 2009]: The level of income at which income extinguishes entitlement to council tax benefit (CTB) will depend upon the liability for council tax as well as the individuals’ personal circumstances. For this reason, it is not possible to provide income figures in the way envisaged in the question.

People receiving the guarantee credit element of pension credit, income support, income-based jobseeker’s allowance or income-related employment support allowance are deemed to have no income or capital and they receive maximum CTB (subject to any standard deductions for any non-dependant household member).

People not receiving the income-related benefits listed above will have their CTB assessed on the basis of an “applicable amount”. The amount is made up of personal allowances and premiums. The personal allowances vary according to age and whether a person is single or one of a married or unmarried couple. The premiums are awarded to those groups identified as having extra needs, for example, long term sick or disabled people and elderly people.

If net income is equal to or is less than the applicable amount, the customer will receive an amount equal to 100 per cent. of their council tax liability less any non-dependant deductions. If net income is more than the applicable amount, the customer will get less CTB. For each pound of extra income over the applicable amount, an adjustment of 20 pence will be made (this is the CTB taper).

In addition, anyone with savings, investments and other capital valued at more than £16,000 will not normally qualify for CTB. Capital of £6,000 or less is ignored. Capital of between £6,000 and £16,000 will be deemed to provide a weekly income of £1 for every £250 (or part thereof) if the person is aged less than 60, or £1 for every £500 (or part thereof) if they are 60 or over.

The following tables set out the applicable amounts, and hence the level at which customers begin to start paying some council tax for the client groups listed in the question.

Pensioners

Starts to pay some council tax when net income exceeds (£)

Single person aged 60-64

124.05

Single person aged 65 or over

143.80

Couple, one or both aged 60 or over, but both aged under 65

189.35

Couple, one or both aged 65 or over

215.50

Working age

Starts to pay some council tax when net income exceeds (£)

Single person aged under 25

47.95

Single person aged over 25

60.50

Couple

94.95

Single parent with one dependent child aged under one

140.34

Single parent with one dependent child aged one or over

129.84

Couple with one dependent child aged under one

174.79

Couple with one dependent child aged one or over

164.29

Notes:

1. All examples assume no disabilities/no childcare costs/no non-dependants.

2. Rates are for current year (2008-09).