A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed (or should have been paid). The Council call the £50 payment a cash back. What’s the difference?A person on full Council tax Benefit does not have to find a farthing to pay the Council tax from his own pocket. So such a person cannot be said to be getting a rebate, or a cash back, because there was nothing to refund. So I think that for people on full CTB we have to ask what word describes the payment of money to this category of resident. Was it a gift? Was it income? Was it capital. Subject to being corrected, the answer to the third question could be No, because when we pay council tax it is normally treated as revenue expenditure. Was it a gift? I doubt it because there would have to be a law which authorises gifts from a Council. Was it Income? If so would HMRC or the DWP treat the payment as Income? And if so for people on Benefits, would the payment be treated as money affecting entitlements to state benefits? A person on benefits is under a legal duty to declare change of circumstances if his weekly income changes, and can be penalised for failing to notify. An increase of income affects entitlements to Income Support JSA and Council Tax Benefit and sometimes Tax Credits. If a Benefit claimant cleans a house for £50 this week and fails to notify and continues to receive full benefits, he has committed a criminal offence. I wonder what advice was given by the DWP, assuming the Council did remember to consult as they said they would.Don’t bother looking, but there are exceptions to what counts as Income mainly listed in Schedule 9 of the Income Support (General) Regulations (NI) 1987. I wonder if the Council thought about that, because the Regs do NOT appear to include Council Tax rebates in the list of exceptions.Regardless of the law, I question whether it was the intention of Parliament for local Councils to give money to Benefit Claimants by way of a so called Council Tax cash back refund, where the claimants are getting full Council Tax Benefit. Also was Parliament’s intention to see ordinary Income Tax payers being deprived of their money, in order to subsidise Benefits claimants over and above their statutory entitlements? This paragraph alone is why I think the Council has taken the law into its own hands and made the wrong decision – and without consulting the tax paying residents of Ealing.Interestingly, the decision by the Conservative Leader to pay £50 was public knowledge by 14 July 2009, but it seems that the legals had not been checked and confirmed BEFORE that date. Press release 1500 in July said ‘ The one-off ‘Value for Money Premium’ will be given to council tax paying households across the borough’ That statement was misleading because it did not mention ALL households liable to Council tax. Of course the law is complex – meaning there could be an exception or a proper interpretation, but if, John, you or others are unhappy with the decision, you could write, (or ask your MP to enquire) to the Council and ask whether they were acting within the law - or ultra vires. Since, John, you have repeated your question, and are now wiser, may we hear your own answer to the issue and possibly what action you intend to take.
George Knox ● 6146d