Finance Minister to bring an end to the Rates Deferment Scheme

Finance Minister, Sammy Wilson, today announced his intention to close the Rates Deferment Scheme for pensioners.
~ Wednesday, 22 February 2012

The Scheme was introduced in April 2010 with the aim to provide a further payment choice for owner occupier pensioners. At that time the Finance Minister had indicated his intention to undertake a thorough evaluation of the scheme’s effectiveness which would examine how many people it would help and whether such a scheme represented value for money.

A full evaluation of the scheme by the Department, which included consultation with older people’s organisations, the advice sector and the Finance and Personnel Committee has now been completed with the decision to bring the scheme to an end.

Sammy Wilson said: “The low take-up of the scheme demonstrates that the scheme is not as effective in providing a payment choice to pensioners, as had been hoped. Over the last two years only 21 pensioners have deferred payment of their rates Iiability.

“I do not believe this provides value for money and the resources can be put to better effect through the wider Land and Property Services benefit take up strategy, so that more pensioners are aware of their entitlements.

“It is worth noting that for the first time over 2,500 additional pensioners have received help with their rates, through the lone pensioner allowance. This has meant around £600,000 of additional help has been awarded to pensioners, with an average award of around £230.”

The Minister added that: “Applications to the rates deferment scheme will continue to be accepted until 31 March this year. The few pensioners who are already deferring rates will be fully protected. Indeed, there is a last opportunity for those who enter into new agreements before 1 October 2012. There will also be protection for the partners and surviving partners of ratepayers who have entered into a deferment agreement by this date.”

Notes to editors:

1. As part of the Executive’s Review of the domestic rating system, following the return of devolution in May 2007, consideration was given to providing a further payment choice for pensioners. This included the introduction of a rates deferment scheme for owner occupiers of pension age.
2. When the rates deferment scheme for owner occupier pensioners was introduced in April 2010 the Finance Minister stated that he was keen for an evaluation to take place to ensure that the scheme was providing value for money. This was intended to reflect concerns expressed by MLAs at the time the scheme was introduced about likely numbers and the effectiveness of the scheme.
3. An evaluation has now been undertaken by the Department of Finance and Personnel, considering the effectiveness of the scheme in meeting the original objectives for the policy and providing value for money. The evaluation also considered how the scheme was implemented and administered, compared actual and expected costs and benefits and considered the impact the policy has had.
4. As part of the evaluation a targeted consultation was undertaken with key stakeholders, and the views of the Finance and Personnel Committee sought.
5. A copy of the evaluation, as well as the original consultation and policy documents relating to the rates deferment scheme can be found on the Rating Review section of the DFP website.
6. Media enquiries only to DFP Communications Office on 028 9016 3389. Out of office hours please contact the Duty Press Officer via pager number 076 9971 5440 and your call will be returned.