Issue - meetings

Council Tax Reduction Scheme

Meeting: 07/12/2016 - Cabinet (Item 41)

41 Council Tax Reduction Scheme pdf icon PDF 70 KB

To consider the Council’s Council Tax Reduction Scheme for 2017/18, to be applied locally for those of working age on low income.

 

 

Decision:

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 2017 as follows:

 

(i)         To remove the Work Related Activity Component in the calculation of Council Tax Reduction for new claims;

 

(ii)             To limit the number of dependent children within the calculation for Council Tax Reduction to a maximum of 2 for new claims and entitlements; 

 

(iii)            To remove entitlement to the Severe Disability Premium where another person is paid Universal Credit (Carer Element) to look after them;

 

(iv)            To use the gross Universal Credit payment as income in the calculation of Council Tax Reduction;

 

(v)             To award council tax reduction if there is an active Housing Benefit claim or for a period up to 6 months following nil entitlement to Universal Credit, without the need to make a new application; and

 

(vi)            To have a Hardship Fund to assist those suffering exceptional financial hardship.

 

 

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 2017 as follows:

 

(i)              To remove the Work Related Activity Component in the calculation of Council Tax Reduction for new claims;

 

(ii)             To limit the number of dependent children within the calculation for Council Tax Reduction to a maximum of 2 for new claims and entitlements;

 

(iii)           To remove entitlement to the Severe Disability Premium where another person is paid Universal Credit (Carer Element) to look after them;

 

(iv)           To use the gross Universal Credit payment as income in the calculation of Council Tax Reduction;

 

(v)             To award council tax reduction if there is an active Housing Benefit claim or for a period up to 6 months following nil entitlement to Universal Credit, without the need to make a new application; and

 

(vi)           To have a Hardship Fund to assist those suffering exceptional financial hardship

 

 

 

Minutes:

In the light of the recommendations of the Corporate Overview and Scrutiny Panel, the Cabinet considered the local Council Tax Reduction Scheme, to be applied to those of working age on low income.  The Panel had established a Working Group to evaluate options in detail.

 

It had been concluded that there should only be relatively minor adjustments to the current scheme.  The minimum contribution should remain unchanged at 10%.  Many of the claimants were under increasing pressure from other welfare reforms and raising the minimum contribution could therefore be counterproductive.  The changes that were proposed were largely to mirror those to other benefits and would consequently maintain consistency and reduce confusion.  In addition, to address the needs of the most vulnerable households, it was proposed to establish a Hardship Fund, which would be at least part funded by the proceeds from a new Prosecution and Penalties policy that was currently under development.

 

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 2017 as follows:

 

(i)         To remove the Work Related Activity Component in the calculation of Council Tax Reduction for new claims;

 

(ii)             To limit the number of dependent children within the calculation for Council Tax Reduction to a maximum of 2 for new claims and entitlements; 

 

(iii)            To remove entitlement to the Severe Disability Premium where another person is paid Universal Credit (Carer Element) to look after them;

 

(iv)            To use the gross Universal Credit payment as income in the calculation of Council Tax Reduction;

 

(v)             To award council tax reduction if there is an active Housing Benefit claim or for a period up to 6 months following nil entitlement to Universal Credit, without the need to make a new application; and

 

(vi)            To establish a Hardship Fund to assist those suffering exceptional financial hardship.

 

 

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 2017 as follows:

 

(i)              To remove the Work Related Activity Component in the calculation of Council Tax Reduction for new claims;

 

(ii)             To limit the number of dependent children within the calculation for Council Tax Reduction to a maximum of 2 for new claims and entitlements;

 

(iii)           To remove entitlement to the Severe Disability Premium where another person is paid Universal Credit (Carer Element) to look after them;

 

(iv)           To use the gross Universal Credit payment as income in the calculation of Council Tax Reduction;

 

(v)             To award council tax reduction if there is an active Housing Benefit claim or for a period up to 6 months following nil entitlement to Universal Credit, without the need to make a new application; and

 

(vi)           To establish a Hardship Fund to assist those suffering exceptional financial hardship