Dodds Introduces New Voluntary Rates Deferment Scheme

The deferment scheme will enable home owning pensioners to defer their rate payments, which could provide a further payment option and remove rates from their day to day budgeting. Its implementation is a result of last year's Executive review of rating.

Announcing his decision Mr Dodds highlighted that he was moving ahead, assured and informed by the detailed feedback he has received during the consultation period. He said: "In taking forward the rating reforms we have already shown that local people and local views can shape and influence the decision making process. The consultation process undertaken last year went way beyond identifying what was wrong with the system and presented ideas on how it could be changed for the better."

Commenting on the quality of the consultation responses Mr Dodds added: "The measures announced today would not have been possible without the responses to the latest consultation exercise. This feedback included advice, guidance and expertise from a wide range of representative groups, interested bodies and individual ratepayers. It has allowed us to develop local policies for local people."

Speaking about the deferment scheme, the Minister noted the broad support for the proposal and highlighted how he had carefully considered the consultation responses before deciding on the way forward. He said: "In light of the consultation responses I have decided to reduce the eligible age for home owning pensioners from 65 to 60, subsequently increasing in line with changes to pensionable age. I have also decided that independent financial advice will not be made compulsory prior to an applicant entering a deferment agreement. However, I want to stress that this will be strongly recommended given the long term financial commitment involved. Finally, the interest rate levied will be the Bank of England base rate minus 1% - in light of current economic uncertainty the Department will reserve the power to introduce a minimum interest rate threshold."

The measures are to be introduced in early 2010, given the time needed to pass the necessary legislation through the Assembly and put the necessary administrative systems in place.