Agenda item

Report of the Cabinet Member Finance, Assets and Regeneration

The Cabinet Member Finance, Assets and Regeneration introduced the report, explaining that each year since 2013, the council had 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 by a national scheme. Funding for this scheme was rolled into the revenue support grant and subject to annual cuts. As the council no longer received a revenue support grant, it needed to fund its share of the cost of the scheme itself.

In 2019/20, the council had approved a new scheme, one of the main aims of which was to ensure that the most vulnerable and those with the lowest incomes continued to receive 100% support. The proposed council tax support scheme from 1^st April 2023 for working age people would continue to be based on five 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.

He explained that due to the impact of Covid, the caseload for working age people had increased by 25% across 2020/21.On the 1^st March 2020, there were 3,984 recipients totalling £3.3m, this rose to 4,988 recipients totalling £4.7m by April 2021. By October 2021, there had been a slight reduction to 4,839 recipients totalling £4.5m. This trend continued, by October 2022 there were 4643 recipients totalling £4.2m in support.

He stressed that despite the increase in the number of working age residents requiring assistance compared to pre-pandemic levels, they would continue to provide 100% support to the most vulnerable and those on the lowest incomes. Many residents were still recovering financially from the effects of the pandemic, coupled with the cost of living emergency, and this scheme would provide vital help for the most financially vulnerable residents.  

He drew colleagues’ attention to the fourth recommendation, which gave officers a degree of flexibility to react to possible changes from national government regarding benefits. It was important that they be in a position to make the relevant changes to the policy when the government made up its mind about what support it would give residents in receipt of welfare. He thanked officers in the Revenues and Benefits team for their extraordinary efforts to support residents, and commended the report to Cabinet.

The Cabinet Member Housing thanked him for bringing this repot forward, and highlighted the importance of the scheme. During the pandemic, they had seen the figures in need of support increase significantly, and it was good to see this declining again now. She was grateful that they were in a position to offer such extensive support.

The Cabinet Member Customer and Regulatory Services added that he was proud to see the council going above and beyond what they were required to do by law, and supporting 5,000 of the most vulnerable people in their community. The government had a tin ear when it came to the cumulative impact of their policies on vulnerable people, and the combined effects of the cost of living crisis, the pandemic, the war in Ukraine, Brexit, and the government’s actions to destabilise the economy had been especially tough on people of working age. He was proud of the council’s response but not surprised. He added that he had recently been working with elderly constituents who were struggling to claim support, since the qualifying criteria for pensioners was administered nationally, and those who had been to proud to claim benefits in the past were not eligible. This was a clear gap in provision that needed to be closed.

The Cabinet Member Safety and Communities praised the continuing support provided to low income households, with no changes to the scheme conditions being proposed. This compared favourably to other authorities around the country, who were having to cut support in all areas. She thanked the Cabinet Member Finance, Assets and Regeneration on behalf of the children in Cheltenham living below the poverty line.

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 3 be noted;

2.    the Local Council Tax Support Scheme for working age customers in Appendix 4 and summarised in Appendix 5 as the preferred option for 2023-24 be approved;

3.    Council be recommended to approve the proposed Local Council Tax Support Scheme for working age customers for 2023/24 on 12th December 2022;

4.    Council be recommended to give authority to the Executive Director for Finance Assets and Regeneration in consultation with the Cabinet Member Finance and Assets to uprate any premiums, allowances and determine the income levels in line with any increase in Welfare Benefits by 20 February 2023.