Overview of Domestic Reliefs
There are no significant domestic rating reliefs in Northern Ireland beyond those provided through the current housing benefit system. This was considered by many respondents to the consultation excercise in 2002 to be a major shortcoming in the current system and one that needed to be addressed.
25% of households in Northern Ireland are entitled to support from the national housing benefit system in paying their rates and the majority of those (20% of households) pay no rates at all.
The Government recognises that those living in properties with high capital values may not always be in receipt of high incomes and therefore may have difficulty in paying their rate bills under the new system. An example would be pensioners living in what was once the family home but who are now reliant upon a fixed state income.
During the public consultations of 2002 and 2004, most of those who responded wanted help to be directed to those who are least able to pay their rate bills and who lie beyond adequate support from the benefits system.
The Government therefore intends to introduce a Rate Relief Scheme that will:
- provide targeted assistance to those ratepayers who are on low incomes but are just above the housing benefit threshold;
- be targeted at those in greatest need and focus on ability to pay;
- be additional to, and seperate from, the current housing benefit system;
- provide for those who have applied, but are not eligible, for housing benefit and may be entitled to assistance under the terms of the scheme;
- not constitute a state benefit.
- read more detail on the Rate Relief Scheme
Disabled Persons Allowance:
- Will simplify the current Scheme.
- A standard 25% reduction in rates where a property has been modified in order to provide a better quality of life for a person with a disability.
- Applicants will have to show that they have a disability, by means of a statement from a medical professional if necessary.
- The modifications to the property will have to relate to the disability.
- It will not be means tested.
- read more detail on the Disabled Persons Allowance
Relief for those in full time education, 16/17 year olds and young people leaving care.
- Property must be occupied solely by those in the above groups.
- Will also be awarded to Halls of Residence.
- Will provide assistance to a small group who by and large are precluded from obtaining assistance through the current benefit system, including the new rate relief scheme.
- For rented property, landlords will be obliged to provide information on the split between rent and rates.
- It will not be means tested.
- Will also provide a passport for eligibility for the new water affordability tariff.
- read more detail regarding relief for those in Full Time Training and Education
Transitional Relief
- Will provide assistance to some households experiencing an increase in their rate bill by more than 33% as a result of the move to a capital value based system.
- Separate from the rate relief scheme.
- Will provide 3 years to adjust to the higher rate bills.
- It will not be means tested.
- It will greatly help in smoothing the transition to the new system.
- read more detail regarding Transitional Relief
