6 May 09 Dodds announces further savings for pensioners under rate relief scheme

This support is on top of changes announced recently in the Chancellor’s budget announcement, which made a similar change to help pensioners on housing benefit, and will take effect in November.

The rule change ensures that £10,000 worth of capital (which includes savings) will be ignored in the calculation of both housing benefit and rate relief for pensioners. The existing amount is £6,000. This change affects the amount of support provided and not the entitlement because, uniquely in Northern Ireland, pensioners can hold up to £50,000 of savings or other capital and still receive lower income rate relief.

Mr Dodds said: “With increasing pressures on household finances for our older population I am keen to ensure that this change is mirrored in the low income rate relief scheme.

"On the basis that the rate relief scheme complements the housing benefit system, the change announced by the Chancellor will also apply to awards under the rate relief scheme from November. I believe that this will be broadly welcomed by older people and should make a real difference for those who have had their relief entitlement reduced because they have modest levels of retirement savings.”

To illustrate the impact of the change, a single pensioner who has a rate bill of £1,000 per year, with income of £15,000 and savings of £12,000, would see their rate relief award increase from £200 to £250 as a result of this change.

In announcing the future change the Finance Minister added: “People should ensure that they apply for the help with rates that they are entitled to. I would also encourage those that may have applied in the past to reapply once this change is introduced or if there is any change in their circumstances.”

If people are having difficulty filling out their forms help should be sought from officials in Land & Property Services or the Housing Executive.

Notes to Editors:

The new Rate Relief Scheme helps you if you are:

·a pensioner and you have savings of less than £50,000;

·getting Housing Benefit for only part of your rate bill; or

·just outside the income limit for receiving Housing Benefit.

Application forms for housing benefit or rate relief can be obtained by phoning Land & Property Services’ helpline on 0845 300 6360, minicom 0845 300 6361, freephone 0800 5877 477 or by emailing: housingbenefit.rating@lpsni.gov.uk.

If a person does not own their own home they should contact the Housing Executive on 0844 892 0902.

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