Agenda item

Council Tax Reduction Scheme

Minutes:

Further to the Executive on 5 September, 2019, the Portfolio Holder for Corporate Services, and the Interim Service Lead for Revenue, Benefits and Customer Support referred to the report circulated with the agenda which summarised the results of the consultation with major preceptors and the public on proposals to introduce a new working-age Council Tax Reduction Scheme from 2020-2.

 

The proposed scheme adopts a discount-based income-banded approach rather than the full means test required under the current scheme. It is designed to be largely cost neutral, with no significant change to the overall level of support, other than some re-distribution of support across our caseload, with most support to those households with the lowest incomes.  It is predicted that 58% of working age households would receive the same level of support, 25% would gain an average of £5.70 per week and 17% would lose an average of £7.29 per week.

 

There would be no reduction in overall level of support but a redistribution of support to the lowest income households which would typically find it the hardest to meet their council tax liability.

 

The committee expressed concerns that some larger families with children currently in receipt of the benefit would lose out up to £1500 per year so that individuals would receive more. Only around 22 households will lose this level of support i.e. more than £1,000, and these are households whose average income exceeds £2,000 per month after ignoring any child benefit, child maintenance and disability related benefits. Capping support at 2 children is concurrent with other welfare schemes such as housing benefit, tax credits and universal credit and the public consultation indicates a high level of public support for this proposal.

 

In response to concerns from the Committee relating to the 17% that would lose out, the Service Lead advised that Teignbridge operated one of the most generous schemes in the country and is the only council in Devon still paying up to 100% support, when other Devon authorities have a cap on support ranging from 70-80%, ensuring maximum protection for the most vulnerable in our community.

 

The Committee also raised concerns relating to single parent households, or couple households, which were likely to lose out, where one or potentially both parties have limited capacity for work, perhaps because one or the other has a disability. It was noted that the scheme disregards all disability-related incomes in the assessment of support and the Council would be undertaking a joint review of the Council's Exceptional Hardship Policy with Citizens Advice Teignbridge to ensure it provides an effective safety net to the main scheme.  This provides targeted support on a case by case basis, and this relief is shared equally by the Council and its major preceptors. Under this scheme the Council seeks not just to reduce the amount of council tax payable where appropriate but also to provide budgeting advice and to ensure claimants are in receipt of all entitlements and have access to cheaper utility tariffs where available. There is no specific budget for hardship. This is because the Council must not fetter its discretion by reference to an available budget. In previous years the take up of exceptional hardship has been lower than estimated despite the Council taking a proactive approach to encourage claims. Any claim for hardship will effectively operate as a write off against the account and will be funded by all major preceptors in proportion to preceptor share.

 

The individual clauses in the proposals were voted on and whilst some had unanimous support there were a number where they were supported by a majority vote.

 

Resolved   Council be advised that the Overview and Scrutiny Committee recommend approval of the proposed changes as detailed in the report circulated with the agenda. 

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