Time for Government to Fully Fund Council Tax Relief for Dementia Sufferers

The Leader of the Opposition and of the Liberal Democrat Group on Oldham Council, Councillor Howard Sykes MBE has written to the Minister responsible for the care of dementia sufferers calling on the Government to “provide 100% reimbursement by central government” to Councils exempting those with dementia from Council Tax.

Under Council Tax regulations, Dementia is classed as a ‘severe mental impairment’ meaning that sufferers living alone are entitled to a 100 percent exemption from Council Tax, whilst a household with a dementia sufferer and a carer will still receive a 25% discount.

A recent report by the website, Money Saving Expert, found that up to 100,000 people with dementia or similar conditions could be wrongly paying Council Tax because they are unaware that they qualify for an exemption.  Money Saving Expert found that two thirds of Councils surveyed by mystery shoppers were unable to provide accurate information about the exemption and how to apply for it.

Councillor Sykes immediately wrote to the Borough Treasurer asking for assurance that Oldham Council was following best practice and is offering every assistance to dementia sufferers to access the exemption.  In her response, Mrs. Anne Ryans indicated that, although Oldham takes a pro-active approach, Councils are not reimbursed by central government for the revenue they lose in applying exemptions.

Commenting, Councillor Sykes said:  “It is good that, as a Council committed to being dementia friendly, Oldham are ahead of the game on this, but it is perverse that Councils are dis-incentivised from promoting and applying the discount as they have to meet the cost themselves.”

“I have written to the Minister responsible asking her quite simply to match the rhetoric of former Conservative Prime Minister David Cameron MP that he would make ‘England the best country in the world for dementia care and support’ with hard cash,” added Councillor Sykes.  “It is both tragic and immoral that dementia sufferers are in many instances still suffering the additional indignity of paying a charge for which they are not legally liable, whilst local Councils, whose finances are already under severe strain, are perversely dis-incentivised from offering them a helping hand.”

 The letter to the Minister below:

The Rt. Hon. Jackie Doyle-Price MP, Under Secretary of State (Care and Mental Health), c/o Ministerial Correspondence and Public Enquiries Unit, Department of Health and Social Care, 39, Victoria Street, London SW1H 0EU

Dear Minister,

I am writing to you as government minister with responsibility for dementia issues.

Under Council Tax regulations, Dementia is classed as a ‘severe mental impairment’ meaning that sufferers living alone are entitled to a 100 percent exemption from Council Tax, whilst a household with a dementia sufferer and a carer will still receive a 25% discount.

Yet in December of last year, the website, Money Saving Expert, reported findings that up to 100,000 people with dementia or similar conditions could be wrongly paying Council Tax because they are unaware that they qualify for an exemption. Money Saving Expert found that two thirds of Councils surveyed by mystery shoppers were unable to provide accurate information about the exemption and how to apply for it.

On hearing the news, I immediately contacted the Borough Treasurer of Oldham Council to ask her to undertake a local review to ensure we follow exemplary practice. In her response, Mrs Ryans brought to my attention one particularly interesting point – that, although Oldham takes a pro-active approach, Councils are not incentivised to seek out eligible recipients of the Severe Mentally Impaired Disregard as central government does not reimburse them for their lost revenue.

In March 2012, then Prime Minister David Cameron MP launched a national challenge to fight dementia stating that: “I want England to be the best country in the world for dementia care and support.”

Minister, I am sure that you will agree with me that, almost six years on from that bold statement, it is both tragic and immoral that dementia sufferers are in many instances suffering the additional indignity of paying a charge for which they are not legally liable, whilst local Councils, whose finances are already under severe strain, are perversely disincentivised from offering them a helping hand.

Can I therefore please ask you to do the right thing for dementia sufferers and make representations to your Treasury colleagues to provide for the 100% reimbursement by central government to local Councils of all of the Severe Mentally Impaired Disregards they award, so we can then go ahead and identify those persons that are eligible?

I shall look forward to receiving your reply.

Yours sincerely

Councillor Howard Sykes MBE

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