Council tax benefits still offered despite funding cuts

Tens of thousands of people across the region will be able to continue claiming council tax benefits, despite the Government slashing the amount it gives authorities to fund it, council bosses said today.

But council tax exemptions are to be scrapped on empty homes to force landlords to bring them back into use. Black Country and Staffordshire councils will have to cope with the loss of millions of pounds when the Government stops reimbursing them for council tax benefits for working age people.

Wolverhampton City Council and Dudley Council are to be stripped of £3.2 million and £2.4m respectively but said they will absorb the shortfall and continue to give benefits.

In Wolverhampton, plans have been announced to scrap council tax exemptions on empty homes, which bosses hope will encourage landlords to bring them back into use and help to cut the 13,000-strong council house waiting list.

Finance chief Councillor Andrew Johnson said: "The hit to the council is £3.2m but we are hoping to offset that and claw back £2m with a change to the discount scheme."

In Dudley there are 17,045 council tax benefit claimants and the government. The council has decided to maintain the level of existing council tax benefits allowed and to find the money elsewhere.

Sandwell Council will be £3.2m worse off after 23,000 benefit claims are no longer reimbursed but is still considering its options, as is Walsall Council. In Cannock Chase there are 3,873 working age council tax benefit claimants. Cannock Chase Council is joining forces with Stafford Borough Council.

South Staffordshire District Council could lose around £650,000.

By Political Editor Daniel Wainwright