From 1st April 2013 Council Tax benefit for working age tenants has been localised and is now administered by local authorities who make their own schemes setting out entitlements. There will continue to be a national scheme for pensioners who will not be affected by these changes.
Up to now, the entire Council Tax Benefit Scheme has been a national scheme but administered by local authorities. Under the former system virtually the whole cost was reimbursed to the local authority. This has also changed. As from April 2013 there has been a 10 per cent reduction in the funding to local authorities from Central Government.
As Council Tax benefit for pensioners will still be fully funded from Central Government funds disproportionately the 10 per cent cut therefore falls on those of working age.