Answer: The government is ending the national council tax benefit scheme and responsibility will transfer to local councils who will be responsible for developing a new local scheme in time for April 2013. We will receive less funding from government under the new scheme. This means the council will have to work with a budget that has been reduced by £1.9 million. In creating a new local scheme the council must decide whether to increase council tax, reduce funding for council services or reduce the level of support provided to claimants in order to make up this shortfall.