Issue - meetings

To agree consultation options for the local Council Tax Support scheme 2025/26 (report of the Deputy Chief Executive – Corporate Development (S151) enclosed).

Consideration was given to the report of the Deputy Chief Executive – Corporate Development (S151) which requested agreement on consultation options for the local Council Tax Support scheme 2025/26.

The Portfolio Holder – Finance presented the report and provided the following information:

Councils had been required to develop local Council Tax Support schemes to support low-income working-age households since 2013.  Prior to this, support was based on a national Council Tax Benefit scheme, delivered by councils but based on rules determined by central government.  The Government continued to prescribe the scheme for pensioners who could receive up to 100% support.  The council had no discretion in this area.

The report under consideration focussed on the scheme for working age claimants. 

The Council was required to review its scheme for working age claimants each year and consult with major precepting authorities and other persons who may have an interest on the proposals for the forthcoming year.  Schemes could not be changed mid-year. 

Current scheme

South Holland’s current scheme provided a maximum level of support of up to 75% for the lowest income working age claimants, leaving at least 25% of the annual Council Tax bill to be paid.  Scheme expenditure in 2024/25 was forecast to be around £4.9million, with just over £2.2million of that relating to working age claimants.  The cost of the CTS scheme was shared between the major precepting authorities, as shown at section 2.3 in the report, with SHDC picking up just under 10%.

Fundamental Review

Cabinet agreed to fundamentally review the scheme in 2024/25, recognising that the current scheme was now dated.  Objectives included modernisation and simplification for the customer, and to improve operational efficiency.  Any final CTS scheme had to be affordable, and in reaching decisions there had to be consideration as to how it would be funded.

This extensive review, supported by the appointment of Visionary Network Ltd and its partners, had considered different scheme approaches, and analysis and data modelling based on current caseload and expenditure.

Section 4 of the report provided a breakdown of the current working age caseload by household type.  Table 2 in section 4.3 provided a view of the number of current CTS recipients with arrears in the last financial year, 2023/24.  The data revealed that almost 23% of current working age CTS recipients had council tax arrears in the previous financial year.  51% of those in arrears were in households with children.

Proposals for 2025/26 scheme consultation

The outcome of the review had led to the set of modification proposals shown in Section 6 of the report.  These would make the scheme more generous, offering enhanced protection for vulnerable families.  It would also provide the opportunity for administration efficiency through streamlining of processes. As an incremental approach to change, it would allow for review after the first full year of the new scheme. 

Having regard to the arrears position for households with children, and a recent DWP report which estimated that 24% of children in South Holland lived  ...  view the full minutes text for item 29