Issue - meetings

Report of the Cabinet Member Finance

The Leader introduced her report and explained that each year the council was required to consider its Local Council Tax Support Scheme for working age customers for 2021/22. Consultation had been undertaken although no significant changes are being proposed to the scheme for 2021/22.

The number of working age council tax support recipients had increased during 2020/21 due to the impact of Covid-19. On 1st March 2020 the number of recipients was 3,984 and this increased by almost 20%  to 4,805 at the end of October 2020.

As part of the measures of assistance in relation to COVID-19, the Government had provided a Council Tax Hardship Fund grant to local authorities to support economically vulnerable people and households in their local area. Cheltenham received a grant of £851,709.  As part of this fund the Government paid an additional £20 p/w Universal Credit or Working Tax Credit during 2020/21 to help council tax support recipients.

As it was not legally possible to change the council tax support scheme when this extra income was announced, the hardship fund has been used to top the level of support back up to the amount before the additional income was included.

The total amount of council tax support being paid to working age recipients at 31 October amounted to £4.4m which included top up hardship awards of £306,000.

The Leader expressed that without hardship funding it would not be possible to top up the level of support and she wished to ensure that the level of support to those most in need remained at today’s level.

RESOLVED THAT

1.    the Local Council Tax Support Scheme for 2021/22 for working age customers in Appendix 2 and summarised in Appendix 3 be approved

2.    the Executive Director for Finance and Assets, in consultation with the Cabinet Member Finance, be authorised to uprate income levels in line with any uprating of Welfare Benefits by 31 January 2021, if required.

Report of the Cabinet Member Finance

RESOLVED THAT:

1.    The outcome of the consultation on 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 be approved as the preferred option for 2021/22;

3.    Council be recommended to approve the proposed Local Council Tax Support Scheme for working age customers for 2021/21;

4.    Council be recommended to give authority to the Executive Director for Finance and Assets in consultation with the Cabinet Member Finance to uprate income levels in line with any uprating of Welfare Benefits by 31 January 2021, if required.

The Cabinet Member Finance presented the report, noting that it would also go to the upcoming Council meeting on 7^th December. She reported that the council had been required since 2013 to help working age people on low incomes pay their council tax. This scheme replaced the national council tax benefit scheme, and each year the council must decide whether to make changes for the forthcoming financial year. She noted that the 2019/20 scheme was based on five income bands, with the highest band offering 100% support to the most vulnerable people, with the lower bands offering 80%, then 60%, and so on. Some minor revisions were made to the 2020/21 scheme to ensure that the most vulnerable residents were protected.

She acknowledged that the present situation had unsurprisingly led to an increase in the number of Cheltenham residents needing support. 4,805 residents were in need of support, nearly 20% more than last year’s figure of 3,984. She pointed members towards Appendix 4, where the results of the local consultation demonstrated a wide and diverse range of circumstances. In particular, she noted that there was a clear need for support for people who were of working age and on low incomes, and was glad that the council would be able to help them.

The Leader of the Council added that he was always happy to see the council doing the maximum it could to support vulnerable people, and that it was important to maintain schemes like this despite government changes.

The Leader moved to a vote, where it was unanimously:

RESOLVED THAT:

1. The outcome of the consultation on 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 be approved as the preferred option for 2021/22;
3. Council be recommended to approve the proposed Local Council Tax Support Scheme for working age customers for 2021/21;
4. Council be recommended to give authority to the Executive Director for Finance and Assets in consultation with the Cabinet Member Finance to uprate income levels in line with any uprating of Welfare Benefits by 31 January 2021, if required.