Stuart Adam and James Browne argue that the advantages of localising council tax rebate schemes seem to be strongly outweighed by the disadvantages; for instance, it will be difficult to design replacement schemes that protect the vulnerable while maintaining work incentives in the context of reduced funding.

With 5.9 million recipients, Council Tax Benefit (CTB) is more widely claimed than any other means-tested benefit or tax credit. The UK government is proposing to abolish CTB across Britain from 2013-14 and give local authorities in England, and the Scottish and Welsh governments, grants to create their own systems for rebating council tax to low-income families - though pensioners in England will have to be fully protected. These grants will be based on 90 per cent of what would have been spent on CTB in each area. In a recent report we examine the likely effects of this policy and the options available to councils.

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