In the current scheme residents who have children are awarded a dependent’s addition with the calculation of their needs (Applicable Amounts). There is no limit on the number of dependent additions that can be awarded. The more children they have the more additions are added to the calculation of their needs.
As shown in the income bands in Proposal One, we give additional discount to parents and carers with one child or dependent and two or more children or dependents. Families with one child or two children can have a higher income and still get the same percentage discount on their Council Tax as a single person or couple without children.
We propose that there should be no further discount for families with three or more children.
The advantages are:
- This would be the same rule that applies for other benefits Universal Credit, Housing Benefit, Tax Credit and the Council Tax reduction scheme for pensioners. From April 2017, central government limited dependent’s additions in Universal Credit, Housing Benefit and Tax Credits to a maximum of two children.
- It is a simple change to make and easy for residents to understand.
- Residents with three children or more may have to pay more of their Council Tax bill.
- This will affect about 300 families in Rother (based on current numbers).
If you know anything else the Council needs to consider please let us know in your response.
Read about Proposal Three