Agenda item

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report and explained that in April 2013 the council introduced its local council tax support scheme. She explained that council tax support for pensioners was not localised and continued to be provided for by a national scheme and in Cheltenham there were approximately 2,400 of pension age.

She explained that council tax support was given to around 6,000 households in Cheltenham at an annual cost of just under £6m. This included working and pension age claimants. Approximately 60% (3600) of those households were of working age. The cost of the council tax support scheme was met by this council and the precepting authorities.

The Cabinet Member reported that  based on 2017/18 data, CBC was one of 37 councils out of 326 whose local council tax support scheme had not been amended to date to reflect reduced government funding.

The Cabinet Member then went on to explain that Cheltenham became a full Universal Credit area in January 2018.. As the number receiving Universal Credit increased, the administration of calculating local council tax support entitlement became greater. This was because Universal Credit was reassessed on a monthly basis and any changes in income would mean that a different level of income  needed to be taken into account for assessing council tax support. A change in the level of council tax support, however small, meant that a revised council tax bill needed to be issued.  Issuing revised bills on a monthly basis was not sustainable for this authority or for those in receipt in managing their budgets. 

The Cabinet Member informed Members that a consultation exercise on proposals for a revised council tax support scheme for 2019/20 was undertaken from 25 July until 9 September 2018 and was widely promoted. 130 people responded to the consultation which was considered a good response when compared to some other councils. Consultation was also undertaken with Gloucestershire County Council, Gloucestershire Police and the parish councils. The responses to the consultation had been analysed as outlined in appendix 3. Together with the income and household composition of the current council tax support caseload, these responses had been used to design the proposed scheme which was summarised in appendix 2.

The Cabinet Member explained that the income bands set the percentage discount to be awarded based on the level of household income. The overriding aim of the scheme was to:

·         Protect the most vulnerable individuals and families by continuing to provide 100% support to those on the lowest income

·         Provide some financial support to low income individuals and families, based on their level of income

·         Minimise the number of changes to the amount of support awarded and therefore the amount of council tax payable due to monthly Universal Credit reassessments

·         Reduce the overall cost of the scheme to the taxpayer

The scheme was 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.

Once the scheme was considered by Council in December the Revenues and Benefits team would notify all those claimants who would be affected by the change to make them aware that they would face an increase in council tax in 2019/20. When council tax bills were issued in March next year further letters would be sent with bills to explain payment options.  

The Cabinet Member referred to the Equality Impact Assessment for the proposed scheme in appendix 4.This had been undertaken once the consultation had finished and analysed at which time the proposed scheme was designed.

The Cabinet Member wished to put on record her thanks to all those who had responded to the consultation and to the significant contribution officers had made.

Members welcomed the scheme and its focus on protecting the most vulnerable and were pleased that the discretionary hardship scheme had been included.

Finally, the Leader noted that the scheme would continue to protect the vast majority with two thirds of current claimants still eligible. He believed this was a fair outcome.

RESOLVED THAT

1.    the outcome of the consultation on proposals to change the Local Council Tax Support scheme in Appendix 3 be noted

2.    the council tax support scheme for working age customers summarised in Appendix 2 be approved as the preferred option for 2019/20 and the Head of Revenues and Benefits be instructed to prepare the full scheme operating conditions

3.    Council be recommended to approve the proposed Local Council Tax Support Scheme for working age customers for 2019/20.