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Changes to the Council Tax Support Scheme

Beech Hurst - Test Valley Borough Council
Test Valley Borough Council (image courtesy of Google)

A new national benefit payment, Bereavement Support Payment (BSP), has led to a change in the way Council Tax Support is assessed.

Test Valley Borough Council have made an amendment to their Council Tax Support Scheme for 2017/18 to ensure that any resident who is eligible for Bereavement Support Payment will not have this income taken into account when calculating entitlement to a reduction in their Council Tax.

Finance Portfolio Holder, Councillor Peter Giddings said “This change brings the calculation for Council Tax Support in line with the Housing Benefit Regulations and ensures these vulnerable customers are protected from large increases in Council Tax.

The Council Tax Support Scheme has been amended to include the following:

  • The initial lump sum payment and any arrears of Bereavement Support Payment will be treated as capital and disregarded for 52 weeks from the date of payment.
  • The monthly payments will be treated as unearned income and disregarded as income for one month from the date of payment. Any unspent money at the end of the month should be treated as capital but not disregarded.

Bereavement Support Payment (BSP) is a new benefit for people whose spouse or civil partner dies on or after 6 April 2017 and replaces all the existing social security benefits for the bereaved (Bereavement Allowance, Widow’s Pension, Widowed Mother’s Allowance, Widowed Parent’s Allowance and Bereavement Payment).

Further information can be found on http://www.gov.uk/bereavement-support-payment

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