Threat of council-tax rise for thousands

New system for those on benefits
THOUSANDS of Oldhamers will be hit by a new system of council-tax benefit in a move council chiefs have blasted as “incompetent or immoral”.

It could mean the majority of claimants will pay more towards their bills. Under the current system the Government sets benefit rules and reimburses councils for the amount paid out to claimants.

From April 2013 councils will control their own scheme, but will but receive only 90 per cent of the cost.

Oldham will be left with a shortfall of at least £3 million, which the council will have to make up.

A three month consultation will get local views on options to raise the money. Benefit changes will not affect pensioners - 39 per cent of Oldham’s 27,600 claimants. But the remaining 16,814 claimants will be affected.

The council currently pays out £22.3 million in benefit. The projected shortfall could be much higher if people don’t or can’t pay their new bills.

The council must draw up its benefit scheme by January 31, and the new regime will start next April.

Council leader Jim McMahon, said: “The Government is either incompetent and doesn’t understand the impact this will have on low income families, or immoral and this is a deliberate attack on poor families.”