Issue - meetings

This report provides options for the Local Council Tax Support Scheme for 2018/19 and asks Members to choose their preferred option in order that any consultation required can be undertaken over the summer.

The Committee agreed:

(1)          To continue with the current scheme with the underlying means testing being kept in line with the Housing Benefit regulations and rates applicable from April of the appropriate year;

(2)          That, in setting the scheme for 2018/19, the scheme should also continue for 2019/20;

(3)          The continuation of the Discretionary Hardship Find for exceptional cases and a provision of £25,000 per year for that purpose.

A report was presented to the Committee which set out two options for the Local Council Tax Support Scheme for 2018/19 and which sought approval of the preferred option in order that any consultation required could be undertaken over the summer, if necessary.

Members were also asked to consider whether to set a scheme for a two year period to bring it in line with the Medium Term Financial Strategy, the Corporate Plan and the planned full roll out of Universal Credit and to continue provision of £25,000 per year for a Discretionary Hardship Fund for exceptional cases.

Option A was to continue with the current scheme with the underlying means testing being kept in line with the Housing Benefit regulations and rates applicable form April of the appropriate year.

Option B was to consider increasing the 20% minimum payment on the current scheme to either 25% or 30% and to undertake the required public consultation for consideration by Members in November 2017.

Option A (continuing with the current scheme) was the preferred option. This was on the basis that consultation cost time and money when the current scheme had been accepted as relatively fair by those affected. Increasing the percentage of the minimum payment would not necessarily guarantee collection rates and, following consultation, it was likely that further consideration would need to be given as to how this might affect vulnerable households.  In addition, Universal Credit was due to come into effect in two years’ time, the financial impact of which on households was still uncertain.  It was felt that council tax support recipients would welcome the security of the continuation of a Council Tax Support Scheme during this period.

The report highlighted that the Council would only retain approximately 11% of any additional income received from reducing the level of Council Tax Support provided and could see an increase in the demand on the Hardship Fund which was fully funded by this Council.

Having noted that a commitment was given to review the scheme should the position radically change within the next two years, the Committee agreed:

(1)          To continue with the current scheme with the underlying means testing being kept in line with the Housing Benefit regulations and rates applicable from April of the appropriate year;

(2)          That, in setting the scheme for 2018/19, the scheme should also continue for 2019/20;

(3)          The continuation of the Discretionary Hardship Find for exceptional cases and a provision of £25,000 per year for that purpose.