30 March 2007 Hanson welcomes returning Assembly with rates boost
Finance Minister, David Hanson, has confirmed the introduction of a cap on domestic rates and additional help for pensioners on low incomes.
This fulfils the Government’s commitment, given during the discussions with the political parties at St Andrews last October.
Speaking today, the Minister said:
“
Following the historic events on Monday and the clear commitments given to restoring power by 8 May I, along with everyone in Northern Ireland, look forward to the restoration of the new Assembly on 8 May.
“I noted with much interest during the election campaign the importance given to everyday issues such as schools, hospitals and rates and welcome the opportunity that will now be afforded to local politicians to tackle head-on the concerns expressed by the Northern Ireland electorate.
“In light of the political progress that has been made over recent months and in preparation for the Assembly being restored, the Government is pressing ahead with its commitment as part of the St Andrews Agreement to introduce a maximum cap on rates, set on properties with a capital value of £500,000, and to provide additional rate relief for low income pensioners in the region of £4m. This reflects our wish to ensure the new arrangements are in place in time for the returning Executive on 8 May.
“These measures reflect the wishes of the majority of local parties, who were closely consulted on how best they should be applied. My announcement today will ensure that they will be in place for a returning Assembly and for the new rating system becoming operational next month.”
Note to Editors
Following the St Andrews Agreement, a Working Group consisting of representatives from Help the Aged and Age Concern produced an options paper on how best to apply additional reliefs for low income pensioners. The main political parties were consulted on this paper.
It was agreed that relief for pensioners would best be achieved by increasing the pensioner personal allowance under the new rate relief scheme by 15% for single pensioners and 10% for pensioner couples.
The following examples illustrate the impact that these enhancements will have:
Example 1
A single pensioner aged 60-64 on the basic state pension plus a small private pension of £150 per week and whose rate bill is £900 would receive no relief under the current Housing Benefit rate rebate system. Under the new rate relief scheme they would have been awarded a reduction of £150 in their bill. As a result of this enhancement, they will now be entitled to a reduction of £256.
Example 2
A pensioner couple with a combined annual income of £18,000 facing a rate bill of £1200 would have received no relief under the existing Housing Benefit rate rebate system. Under the new rate relief scheme they would have been entitled to £272 in relief. Following the enhancement, this relief now increases to £395.
A cap on properties with a capital valuation of £500,000 would mean that the highest rate bills in Northern Ireland would be comparable with the maximum council tax bills in Great Britain.
