Issue - meetings

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report and explained that each year since 2013 the council has been required to set its local council tax support scheme for working age residents. Council tax support for pensioners was not localised and continued to be provided for by a national scheme.

The cost of the scheme is funded by this council and the precepting authorities in proportion to the share of council tax. Funding for the scheme was initially cut by 10% in 2013/4 then was rolled into revenue support grant and subject to annual cuts. As this Council no longer receives revenue support grant it must fund its share of the cost of the scheme.

Despite the reduction in funding this council continued to provide the same level of support to working age residents that was available under the former council tax benefit scheme. By 2018/19  CBC was one of only 36 councils that hadn’t made changes to their scheme to reduce the cost.

In 2019/20 a new scheme was approved. One of the main aims was to ensure that the most vulnerable and those with the lowest incomes continued to receive 100% support. The scheme 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 increases.

In the first year of the scheme the overall costs reduced and the most vulnerable and those with the lowest incomes were protected.   Due to the impact of Covid the caseload for working age people increased significantly in 2020/21 and was up by 25% in April 2021. The Cabinet outlined the following :

1st March 2020

 3,984 recipients cost £3.3million

1st April 2021

4,988 recipients  cost £4.7million

31 October 2021

4,839 recipients  cost £4.5million  (Later point than figures in the report)

Despite the increase in the number of working age residents who require assistance, the council continued to provide 100% support to the most vulnerable and those with the lowest incomes.  During 2021/22 the income bands were increased so that residents benefitting from the £20 Universal Credit uplift would not be penalised because of this additional income.  For 2022/23 the income bands are being maintained and will remain at the higher level. This will benefit residents if they choose to take on extra work as a result of losing the £20 uplift.

The Cabinet Member explained that although the number of working age residents receiving council tax support was now reducing it was anticipated that it will continue to reduce slowly. The caseload in 2022/23 is expected to remain higher than at pre-pandemic levels. Many people are still recovering financially from the effects of the pandemic and the scheme will provide the vital help they need during 2022/23.  

He wished to put on record his thanks to all the officers in the revenue and benefits teams for what has been an extraordinary amount of work during the last 12 months supporting residents in  ...  view the full minutes text for item 9

Report of the Cabinet Member Finance and Assets

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 2022/23;

3.    Cabinet recommend that Council approves the proposed Local Council Tax Support Scheme for working age customers for 2022/23;

4.    Cabinet recommend that Council gives authority to the Executive Director for Finance and Assets in consultation with the Cabinet Member Finance and Assets to uprate income levels in line with any increase in Welfare Benefits by 21 February 2022, if required.

The Cabinet Member Finance and Assets presented the report, noting that the council had been required to set a scheme for working-age residents every year since 2013. Funding for the scheme had been cut over the years and rolled into Revenue Support Grant, against a general background of local government funding reductions, but the council continued to provide the same level of support to residents despite this.

In 2019/20, a new scheme was approved with the main aim being to ensure that the most vulnerable and lowest income residents continued to receive the same support. The scheme was based on five income bands, outlined in the report. Due to the pandemic, the caseload for working-age people increased significantly, with a 25% rise by April 2021. Until March, there were 3,984 recipients with a sum cost of £3.3m, which rose to 4,988 recipients at a cost of £4.7m. Despite this increase in residents requiring assistance, the council continued to provide 100% support for those in the lowest income brackets.

During 2020/21, the income bands were increased so residents benefitting from the £20 Universal Credit uplift were not penalised. These bands will remain at the higher level in 2022/23. Many people were still recovering financially from the pandemic, and this would help them out over the next few years. He thanked officers in the Revenues & Benefits team and asked that Cabinet endorse the recommendations in the report.

The Cabinet Member Cyber and Strategic Transport added that this was one of the most important reports that Cabinet considered every year, as the council could make a genuine difference to the most vulnerable residents. The key change this year was that minor changes in income would not affect what a low-paid resident would receive, which would prevent entitlements being unnecessarily disrupted. The Leader agreed with this and praised the focus on aiding the most vulnerable residents.

The Leader moved to the 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 2022/23;

3.    Cabinet recommend that Council approves the proposed Local Council Tax Support Scheme for working age customers for 2022/23;

4.    Cabinet recommend that Council gives authority to the Executive Director for Finance and Assets in consultation with the Cabinet Member Finance and Assets to uprate income levels in line with any increase in Welfare Benefits by 21 February 2022, if required.