Agenda item

The Cabinet Member for Finance & Commissioning, Councillor Strachan, summarised the proposed new Local Council Tax Reduction Scheme Report and thanked Steve Woods and Lizzie Barton and her team for the consultation exercise which now meant the Council could move forward with a new proposed scheme.

The proposed changes were detailed on page 1 of the report and Councillor Strachan confirmed that the scheme aimed to make it better for claimants and better for council taxpayers allowing them more financial support, less paperwork and thus confusion, provide more financial stability and reduce debt recovery activities.  He said the new scheme had the ability to award 100% reduction to those on the very low incomes and there were a number of income disregards.  It was a banded route which should permit fluctuation within the band and all major preceptors had been consulted and widespread support had been reported.  The need for extended payments (where someone who was unemployed, but gains employment, retains the same council tax reduction for the first four weeks of their employment so that they do not face bills as soon as they start working) had been revisited and given the new scheme is designed to encourage and support people into and to remain in work it was proposed that extended payments be retained in the new scheme despite the consultation feedback.  Members support and comments was requested.

The following questions/comments were given:-

1.    Were there exemptions for students and care leavers?

2.    Can we develop the automation for the process?

3.    Who were able to comment on the proposed scheme and were CAB asked to comment as an organisation who also deal in benefits? 

4.    It was agreed the extended payments element should be retained – very valuable.

5.    Good to see that discretion was to be built in but there was concern as to a 2 child limit – (it was agreed to look at this policy for discretionary payments at the O&S meeting in January).

6.    How are we going to inform customers of the new scheme as needs to be as seamless as possible? 

Lizzie Barton assured members that the contact centre staff would all be trained and know how the new scheme works and she will be working with the CAB to signpost effectively and encourage people on to the new scheme which will all be in place before it goes live.

RESOLVED:-

(1)  The Committee supported the introduction of a new income banded Local Council Tax Reduction Scheme for working age claimants with effect from 1 April 2023 in line with all proposals (detailed in Appendix 1), except for the removal of extended payments.

(2)  The Committee supported the retention of extended payments to better support residents who gain employment (see3.21).

(3)  The Committee noted that subject to their input, the proposals will be considered for approval by Cabinet in December. If the scheme is approved, the exact rates for the 2023 – 2024’s Local Council Tax Reduction Scheme will be brought to Cabinet and Full Council in February 2023 as part of the council tax settingproposals.