Issue - meetings

To agree consultation proposals for the local Council Tax Support scheme, 2026/27 (report of the Interim Director of Finance (Section 151 Officer) enclosed).

Consideration was given to the report of the Interim Director of Finance (S151) which provided an update on the current scheme and expenditure, and sought Cabinet approval to consult on proposals for 2026/27.

The Portfolio for Finance introduced the report and by way of background, reminded members that since 2013, billing authorities had been required to develop local Council Tax Support (CTS) schemes to assist low-income working-age households.

Prior to this, support had been provided through a national Council Tax Benefit scheme, which was administered by councils but operated under rules set by central government.

It was noted that 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 Portfolio Holder for Finance added that the report presented focused on the scheme for working-age claimants. Members were advised that the Council was required to review its working-age CTS scheme annually and consult with major precepting authorities and other interested parties on any proposals for the forthcoming year. It was further noted that schemes could not be amended mid-year.

Following a fundamental review in the previous year, South Holland’s current scheme provided a maximum level of support of up to 85% for households with children and 75% for other households.

It was noted that forecasted expenditure for the CTS scheme in 2025/26 was approximately £5.2 million, with £2.5 million supporting around 2,500 low-income working-age claimants.

The cost of the scheme was shared between the major precepting authorities, with South Holland Council contributing approximately 12% of the total cost, as detailed in section 2.2 of the report.

DECISION:

1)    That the consultation on continuation of the current Council Tax Support scheme, including uprating in line with DWP’s annual update of allowances and premiums for 2026/27, be approved.

2)    That oversight and approval of the consultation approach be delegated to the Section 151 Officer in consultation with the Portfolio Holder for Finance.

(Other options consider:

·           Whilst recognising the challenges South Holland District Council faces to present a balanced budget for 2026/27, options to reduce the maximum level of Council Tax Support are not being considered for 2026/27 due to the impact this would have on working age claimant households.

Reasons for decisions:

·         To agree consultation proposals for the local Council Tax Support scheme, 2026/27).