To consider and decide on the recommendations as set out in the attached report.
Decision:
RESOLVED –
1. That the finding of the review of the current Council Tax Reduction Scheme is noted.
2. That the potential impact of the proposed changes to the Council Tax Reduction Scheme on working age claimants is noted.
3. That the impact of the proposed changes to the Council Tax Reduction Scheme on people with the protected characteristics of disability, sex and age, as set out in Section 7 and Appendix b; and weighs up these impacts against any potential savings in the administration of the scheme that may be made by the Council as well as achieving the objective, to maintain costs of the scheme in line with the current scheme into 2021/22 is noted.
4. That Cabinet delegates authority to the Head of Revenues and Benefits to finalise and commence consultation on the Council Tax Reduction Scheme to be implemented for 2021-22
REASON FOR DECISION: In providing financial support to low income households the Council will support communities enjoy good health and resilience to the challenges they encounter.
Minutes:
Sheila Coburn, Head of Revenues and Benefits Partnership introduced a Report that provided details of the Council Tax Reduction Scheme for 2021-2022.
Discussion and responses to Members questions included the following:
- The Cabinet Report of September 2019 explained that the current Council Tax Reduction Scheme was now out of date.
- The many amendments to Universal Credit payments made by the Department of Works and Pensions had a knock on effect to customers in receipt of Council Tax Reductions.
- Each time notification was received of a change in Universal Credit an adjustment was required to the amount of Council Tax Reduction a claimant would be entitled to. This meant the customer could receive numerous bills throughout the year which was confusing.
- An analysis had now been carried out and an income banded scheme was the fairest and simplest to administer and explain to customers. This would also be in line with many other councils including the majority of the other Kent Authorities.
- The simpler income banded scheme included wide income bands within. The only changes that would be necessary were if the claimant moved into a different income band.
- Three models had been considered:
o Model 1 – allowed for a maximum support of 80%.
o Model 2 – allowed for a maximum support of 80% but also included a 5% uplift in support for those households in receipt of a disability or illness benefit.
o Model 3 – allowed for a maximum support of 80% where a household was in receipt of a disability or sickness benefit only. All other households would receive a maximum support of 70%.
- There would be gainers and losers as with all new schemes. The current scheme favoured those in receipt of Legacy Benefits compared to Universal Credit. The reverse would be the case for the Income Banded Scheme as it would benefit those on Universal Credit. Although full migration to Universal Credit was not expected until 2024 more and more people were being moved onto it.
- There was an exceptional hardship policy in place and this would be updated to protect those who might otherwise experience financial hardship.
- A public consultation was mandatory where changes were proposed to the scheme, details of which were contained in the Report.
- The consultation would make clear the need for change and the effects both positive and negative to individual claimants.
- Following the consultation process a further Report would be brought back to Cabinet for a final decision.
RESOLVED –
1. That the finding of the review of the current Council Tax Reduction Scheme is noted.
2. That the potential impact of the proposed changes to the Council Tax Reduction Scheme on working age claimants is noted.
3. That the impact of the proposed changes to the Council Tax Reduction Scheme on people with the protected characteristics of disability, sex and age, as set out in Section 7 and Appendix b; and weighs up these impacts against any potential savings in the administration of the scheme that may be made by the Council as well as achieving the objective, to maintain costs of the scheme in line with the current scheme into 2021/22 is noted.
4. That Cabinet delegates authority to the Head of Revenues and Benefits to finalise and commence consultation on the Council Tax Reduction Scheme to be implemented for 2021-22
REASON FOR DECISION: In providing financial support to low income households the Council will support communities enjoy good health and resilience to the challenges they encounter.
Supporting documents: