Agenda item

Council Tax Reduction Scheme - public consultation

Decision:

RESOLVED that plans to consult with major preceptors and the public on proposals to introduce a new working-age Council Tax Reduction Scheme for the year 2020-21 be approved.

It is recommended that the Council maintain overall support at current levels and that the following key features of our current scheme be retained:

o Maintain maximum support at 100%

o Maintain an Exceptional Hardship Scheme

o Continue to award 100% support to passported claims

o Disregard disability related benefits when calculating income

o Disregard child benefit and child maintenance when calculating income

o Disregard War disablement/widows pension when calculating income

o Limit the no. of dependent children in the calculation to a maximum of two for all new claimants

o Apply the minimum income floor for self-employed claimants

o Capital limit of £6,000

o Allow for childcare costs

It is recommended that the following additional features are included in the new scheme:

o Disregard Carers Allowance when calculating income

o Disregard Employment and Support Allowance (support element) when calculating income

o Replace current variable earnings disregard with a standard £25 disregard for all

o Incorporate a Return to Work Incentive for Universal Credit claimants and others by paying support for a period of one month beyond the return to work date.

o Apply the current two dependent children limit used in the calculation to existing claimants

o Remove non-dependent deductions from the scheme

o Disregard payments made under the Windrush Compensation Scheme, We Love Manchester Emergency Fund and similar Government funded compensation schemes

o Reduction to be awarded from the date of change as opposed to the ‘Monday following’ the date of change

o Remove the requirement for good cause to be proven before backdating the award.

o Increase the 1 month back-date time limit to 12 months.

o Remove the restriction that limits support to maximum Band D property.

Minutes:

Prior notification - Member questions and responses attached to minutes.

The Portfolio Holder for Corporate Resources presented the report that outlined the main reasons for recommending a move to a new simplified Council Tax Reduction scheme for the year 2020-21 which would be reviewed and revised as appropriate at the end of the year. The Council had a long record of providing Council Tax Support for those in need and this report sought to address the changes with the rollout of Universal Credit. The report also sought permission to consult with precepting authorities (Devon County Council, Police & Crime Commissioner for Devon and Cornwall, Devon and Somerset Fire and Rescue Authority) and such other persons as were likely to have an interest in the operation of the scheme.

He brought Members attention to the proposed additional features which included incorporating a return to work incentive and the removal of the restriction that limited support to a maximum Band D property. He brought Members attention to the case studies in the appendix. The scheme would be cost neutral and Overview & Scrutiny Committee would have a chance to review the proposals in light of the consultation responses before coming back to Executive and Council.

Non-Executive Members raised issues regarding the inadequate response to the submitted questions; had concern regarding some the proposed changes, how they could affect low income residents; could not support the proposals; Overview & Scrutiny Committee would look at the scheme with the goal to develop the best scheme possible.

The Leader stated that everybody effected would be consulted.

Officers advised that it should be noted that any new proposals not considered in the original consultation could not take effect without fresh consultation.

The Portfolio Holder for Corporate Services proposed the recommendation, this was seconded by the Portfolio Holder for Waste Management & Environmental Health.