Local authorities are to be given control of council tax benefit, while administering a ten per cent reduction in the overall CTB award.
In the first real example of localisation, any saving made by supporting people into work will be retained by local authorities. Though the sums are likely to be small, this is the first test of councils ability to decide on the allocation of benefits (as opposed to administering central government decisions).
The change is expected to complicate the interaction with Universal Credit. Under Universal Credit, it is speculated that council tax benefit will be administered as a tax relief, with the impact on work incentives unknown and likely to vary between local authorities. The final decision on council tax benefit and Universal Credit has yet to be made.