Issue - meetings

Report of the Cabinet Member Finance

RESOLVED THAT:

1.    the outcome of the consultation on proposals to change the Local Council Tax Support scheme in Appendix 4 be noted;

2.    the council tax support scheme for working age customers in Appendix 2 and summarised in Appendix 3 as the preferred option for 2020/21 be approved;

3.    it be recommended that Council approves the proposed Local Council Tax Support Scheme for working age customers for 2020/21.

The Cabinet Member Finance introduced the report, she explained that since 2013 the council had been required to set its local council tax support scheme each year for working age people. She advised that council tax support for pensioners is not localised and continues to be provided for by a national scheme.

She explained that council tax support costs 5.6m annually and the cost is met by the council and the precepting authorities. Government funding for the scheme had reduced by 10% in 2013/14 and had since been rolled in to revenue support grant. She advised that CBC no longer receives a revenue support grant and so must fund its share of the cost of the scheme.

She confirmed that the council tax support scheme introduced for 2019/20 is based on 5 income bands with the highest band providing support at 100% of the council tax liability, then reducing to 80%,60%,40% and 20% as household income increased. One of the main aims of the scheme was to continue to provide 100% support to the most vulnerable and those with the lowest income.  She advised that officers had been monitoring the 2019/20 council tax support scheme and the impact of Universal Credit, and as a result some changes were being proposed to the scheme for 2020/21. A consultation had been undertaken in respect of these proposals and the results were included at appendix 4 of the report.

She advised that the proposed changes were supported by the majority of responses to the consultation and were as follows:

·           Increase the income disregard for each disabled child from £65 to £100 per week to provide additional support to families with disabled children;

·           Ignore the Limited Work Capability allowance which will ensure that certain customers continue to receive the maximum support when they transition to Universal Credit; and

·           Increase the income levels for each band slightly to keep pace with moderate increases in pay or welfare benefits.

The changes being proposed would ensure that support continued for the most vulnerable residents, although they would increase the cost by an estimated £90k.  Moving to the scheme based on income bands in 2019/20 had reduced the total cost of the scheme in excess of the estimated £420,000, based on the current caseload. The estimated savings would continue to be achieved with the introduction of the proposed changes to the scheme for 2020/21.

Cabinet Members thanked both officers and the Cabinet Member Finance for all their essential work in supporting vulnerable people within the community.

RESOLVED THAT:

1.      The outcome of the consultation on proposals to change the Local Council Tax Support scheme in Appendix 4 be noted;

2.      The council tax support scheme for working age customers in Appendix 2 and summarised in Appendix 3 as the preferred option for 2020/21 be approved;

3.      It be recommended that Council approves the proposed Local Council Tax Support Scheme for working age customers for 2020/21.