Decision details

RESOLVED:

That Cabinet recommend to Council the approval of:

1.    The changes to the Council Tax Reduction Scheme from 1 April 2025:

a)    The removal of the Band D cap at an overall cost to precepting authorities of £33k;

b)    The increase of the de-minimis rule to £2 at no net cost; and

c)    The alignment of childcare costs with Universal Credit for all claims at a saving of £3k to precepting authorities

2.    The Council Tax Reduction Scheme Sanctions and Prosecution Policy

KEY DECISION:

Report to Cabinet and Council

PORTFOLIO:

Finance and Corporate

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST:

None

DISCUSSION:

The Portfolio Holder for Finance and Corporate introduced the report and reported that the Council was responsible for determining its Council Tax reduction scheme.  He expressed his thanks to a member led task and finish group which had carried out a review of the current scheme and considered changes for the next financial year as well as the Resources and Transformation Overview and Scrutiny Panel. 

The Service Manager Revenues, Benefits and Customer Services reported there were three main components to the report; a review of the Council Tax Reduction Schemes, a review of the Council Tax Scheme Sanctions and Prosecutions Policy and the prescribed exceptions to Council Tax premiums for second homes and empty homes.

The Council Tax Reduction Scheme had 8,000 claimants and the cost of this was £10 million, which was shared between all precepting authorities.  A review had been carried out of the scheme and a consultation of the proposed changes took place over a 6 week period, resulting in 225 responses.  Feedback had been received from Hampshire County Council expressing concern about the changes to the scheme which were more generous and therefore reduce the income it would receive, in light of the financial position of the County Council.  The recommendations which sought approval was the removal of the Band D cap, an increase of the de-minimus rule to £2 and aligning childcare costs with Universal Credit.

The Council Tax Scheme Sanctions and Prosecutions Policy was reviewed every three years and as there had been no changes to legislation, only minor changes had been made to this policy.

Finally, no exceptions had been recommended to the Council Tax premiums relating to second homes and empty homes.  It was reported that contact would be made with those affected by those premiums which would come into force from 1 April 2025.

A non-Cabinet member expressed support to the recommendations contained within the report.  In response to a point raised by a non-Cabinet member in relation to armed forces veterans and the impact any compensation received, might have on any Council tax reduction, it was confirmed that the Council had agreed last year to continue with the income disregard in the assessment of Housing Benefit and Council Tax Reduction and therefore support was already being provided to armed forces veterans.