Issue - meetings

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report and explained that up to April 2013 council tax benefit was fully funded by government. In April that year government provided the council with 90 % but the council maintained the full 100 % funding with the 10 % shortfall funded by reducing council tax benefits on empty properties.

She went on to explain that in 2014/15 government stopped separately identifying their contribution and left it to local authorities to continue or not. She was pleased to say that this council had continued to support those residents that were on low working incomes or retired on low pensions. She reported that up until September 2016 there were 4211 working age and 2710 pension age customers helped by this scheme.

The Cabinet Member stated that the majority of welfare cuts since 2013 had been targeted at the working age group. Changes to the universal credit go live date had been pushed back to 2018 for all new claims and the new benefit cap for single people for couples and lone parents came into effect on 7 November and a limit on child premiums would come into effect in April 2017.

She reported that a cut to the maximum award was considered but for the reasons outlined above she requested that the council continued to support the scheme at 100 % for 2017/18 as per the recommendations.

Members were pleased that the council was in a position to continue to support this particular group of people as many other authorities had not taken the same decision and the council’s approach was deemed to be ‘morally right’ at this time in the light of a tightened benefit cap and the introduction of universal credit. The people affected were finding it very difficult to make ends meet and a cut would be particularly punitive.

RESOLVED (unanimously) THAT

the working age council tax support scheme remain unchanged for 2017/18, other than any annual uprating of premiums, allowances and non-dependant deductions.

Report of the Cabinet Member Finance

RESOLVED THAT

Council keep the working age council tax support scheme unchanged for 2017/18, other than any annual uprating of premiums, allowances and non-dependant deductions.

The Cabinet Member Finance introduced the report and explained that in April 2013 the government gave the council 90 % of the cost of the previous year’s scheme, nationally set the pension age scheme that the authority had to administer and gave the local authority the responsibility of creating its own working age scheme each year as long as it complied with certain conditions, such as protecting the vulnerable and not to disadvantage those in work. To generate additional income to fund the 10 % shortfall in grant the council reduced the council tax discounts on empty properties and second homes. She reported that in 2014 the government left it entirely up to the local council to decide how much to spend on council tax support, however they still set the pension age scheme nationally so any savings could only be made from the working age scheme. Since 2013 the number of people claiming council tax support had reduced by 10 % and the amount awarded had also reduced. This was mainly due to welfare cuts in working age benefits, the changes in pension age and until 2016/17 a freeze in council tax charge.

The Cabinet Member Finance stated that the universal credit live date for all new claims in Cheltenham had been delayed until 2018 and a new benefit cap came into effect on 7 November 2016 with a new limit on child premiums due to be introduced in April 2017 which would restrict the maximum child premium additions to two children for new claims or breaks in benefit.

Members commented that they were pleased the council was still funding those “just about managing” despite no specific support provided to local authorities from Government.

RESOLVED THAT

Council keep the working age council tax support scheme unchanged for 2017/18, other than any annual uprating of premiums, allowances and non-dependant deductions.