‘No easy answers’ on council-tax discounts

DIFFICULT decisions lie ahead in finding cuts to council tax benefits in Oldham according to council leader Jim McMahon.

The Labour councillor has waded into the debate on changes to tax discounts via his leader’s blog.

As reported in the Chronicle, fears were raised that the single person’s discount would be among tax relief set to be slashed as part of funding cuts from the Government.

A national newspaper reported how pensioners and widows would be hit unfairly by the decision. Reassurances have now been made by Councillor McMahon that a full consultation will be staged before any proposed changes come into effect, expected to be in April, 2013.

He explains how the Government wants every local authority to be in charge of money set aside for discretionary relief to taxpayers.

This means Oldham Council will have to introduce its own eligibility criteria to distribute the cash — that is to be cut by 10 per cent.

But it is proposed that pensioners should continue to get total protection from the reduction. Another group of recipients — around 25 per cent — would be exempt from having the support cut because of the council’s duties to tackle child poverty and support vulnerable groups.

Councillor McMahon says this means that the budget cut is likely to fall on the remaining recipients, for example the support to low-income families or those receiving the single person’s discount.

He added: “We’re already debating these issues internally and there are no easy answers, especially when you consider that the existing single person’s discount doesn’t take into account an individual’s actual ability to pay.”