Benefit cut hits borough hard

GOVERNMENT plans to change the system for council-tax benefit claimants is to be discussed by Oldham Council tonight.

The controversial Whitehall scheme, affecting more than 27,000 people in the borough, will see the benefit axed in favour of local schemes, with funding reduced by 10 per cent.

Liberal Democrat councillors Jackie Stanton and Lynne Thompson, who will raise the issue at council, believe this financial cut will squeeze poor authorities like Oldham the hardest.

Councillor Thompson said: “Councils will be charged with running their schemes on 10 per cent less money and there is a clear steer that they should make up the shortfall mainly by getting people into work, so reducing claims.

“There is an equally clear steer that low-paid workers should be cushioned more, to increase incentives to work.”

In the coalition Government’s 2010 Spending Review, it was announced that the changes would begin in the 2013-14 financial year.

Under the provisions published in the Welfare Reform Bill earlier this year, the Government will hand councils a lump-sum grant, who then decide who gets what help.

Currently council-tax benefit is worth between £16 and £18 a week, and covers up to 90 per cent of a bill.

The 10 per cent cut would see a reduction of more than £2.3 million in funding for Oldham.

Councillors Stanton and Thompson believe a combination of high unemployment, low wages and low house values will see Oldham Council facing a higher demand for rebates and least able to find more money.

Councillor Stanton added: “Pensioners with lower incomes will be protected, which I thoroughly welcome.

“But councils will be faced with the decision whether to cut help or make up the shortfall — if they are allowed to.

“The choice of reducing help to the most needy, reducing the services they rely on or putting council tax up is an unfair new burden.”