Issue - meetings

To agree the local scheme that provides help for those on low income to pay their Council Tax.

DECISION:

That, in so far as it is empowered to do so by law, the Cabinet agrees that the Local Council Tax Reduction Scheme be amended with effect on 1 April 2016 as follows:

(i)               That, subject to the necessary upgrading of the software administering the  Council Tax Reduction Scheme, the  current scheme be amended by removing the family premium for new claims;

(ii)              That the period for which claims can be backdated be reduced from 6 months to 4 weeks; and

(iii)            That no change be made to the minimum contribution paid by those of working age (except those classified as vulnerable).

RECOMMENDED:

That, in so far as it is empowered to do so by law, the Council agrees that the Local Council Tax Reduction Scheme be amended with effect on 1 April 2016 as follows:

(i)              That, subject to the necessary upgrading of the software administering the  Council Tax Reduction Scheme, the  current scheme be amended by removing the family premium for new claims;

(ii)             That the period for which claims can be backdated be reduced from 6 months to 4 weeks; and

(iii)           That no change be made to the minimum contribution paid by those of working age (except those classified as vulnerable).

The Cabinet considered the recommendations of the Corporate Overview and Scrutiny Panel on amendments to the Council’s local Council Tax Reduction Scheme to reflect changes that had been made to other benefits.  Further reforms were also expected to be introduced during the spring of next year.

In the light of the increased financial pressures facing those on low incomes, and the likelihood that collection rates may suffer counter-productively in the face of any increase, the Cabinet concurred with the recommendation that there should be no change to the minimum contribution that each household must pay towards the Council Tax.  All working age claimants (except those classified as vulnerable) currently paid 10% of their Council Tax.

The two changes that were proposed were to remove the family premium for new claims and to reduce the period for which a claim would be backdated from 6 months to 4 weeks.  This mirrored changes being made to Housing Benefit and ultimately Universal Credit with effect from 1 April 2016 and would assist the administration of the Council’s scheme.  Some changes would be needed to the software used to manage the scheme, but the cost was expected to be modest and able to be contained within existing budgets.  Removing the family premium was projected to achieve savings of £30,000 per annum, and reducing the backdating period to savings of £6,000 per annum.  Very few claimants sought backdating of more than 4 weeks.

The Council had carried out consultations on the proposed changes but had received only 13 responses, most of which supported the proposal that the minimum contribution payable by working age claimants should not be increased.

RESOLVED:

That, in so far as it is empowered to do so by law, the Cabinet agrees that the Local Council Tax Reduction Scheme be amended with effect on 1 April 2016 as follows:

(i)               That, subject to the necessary upgrading of the software administering the  Council Tax Reduction Scheme, the  current scheme be amended by removing the family premium for new claims;

(ii)              That the period for which claims can be backdated be reduced from 6 months to 4 weeks; and

(iii)            That no change be made to the minimum contribution paid by those of working age (except those classified as vulnerable).

RECOMMENDED:

That, in so far as it is empowered to do so by law, the Council agrees that the Local Council Tax Reduction Scheme be amended with effect on 1 April 2016 as follows:

(i)              That, subject to the necessary upgrading of the software administering the  Council Tax Reduction Scheme, the  current scheme be amended by removing the family premium for new claims;

(ii)             That the period for which claims can be backdated be reduced from 6 months to 4 weeks; and

(iii)           That no change be made to the minimum contribution paid by those of working age (except those classified as vulnerable).