Issue - meetings

For Cabinet to agree the 2027/28 Council Tax Support Scheme consultation (report of the Executive Director - Finance (Section 151 Officer) enclosed).

Consideration was given to the report of the Executive Director – Finance (Section 151 Officer) which asked Cabinet to agree the 2027/28 Council Tax Support Scheme consultation.

The Portfolio Holder for Finance presented a report on the Local Council Tax Support (LCTS) Scheme and the proposals for consultation relating to the 2027/28 scheme.

Members were advised that the Council was required to develop and maintain a Local Council Tax Support Scheme to assist low-income working-age households. Prior to 2013, support had been provided through a national Council Tax Benefit Scheme, administered by local authorities but based on rules set by central government.

The Portfolio Holder explained that central government continued to prescribe the scheme for pension-age claimants, who could receive up to 100% support. The Council had no discretion in respect of pensioner entitlement. The report therefore focused on arrangements for working-age claimants.

It was noted that the Council was required to review its scheme annually and consult with the major precepting authorities and other interested parties regarding proposals for the forthcoming financial year. Members were reminded that the scheme could not be amended during the course of a financial year.

Cabinet was reminded that a comprehensive review of the scheme had been undertaken, with changes implemented for 2025/26. Section 2 of the report provided details of the current arrangements, which allowed households with children to receive up to 85% support and all other working-age households to receive up to 75% support.

The forecast expenditure for the scheme in 2026/27 was approximately £5.5 million, of which around £2.7 million related to support for low-income working-age claimants. The cost of the scheme was shared between the major precepting authorities, with South Holland District Council’s contribution being approximately £653,000.

Looking ahead to the 2027/28 scheme, the Portfolio Holder advised that consideration had been given to the implications of Local Government Reorganisation, with future structural changes likely to require the development of a new unified scheme in due course. Any future changes arising from reorganisation would inevitably affect claimants.

Members were advised that the current scheme continued to meet the Council’s objective of providing support to households with children whilst remaining financially sustainable.

Two options had therefore been considered for 2027/28, both of which proposed retaining the existing scheme:

• Option 1 (Preferred Option): Retain the current scheme and apply annual upratings in line with Department for Work and Pensions (DWP) allowances and premiums.
• Option 2: Retain the existing scheme without applying the DWP upratings.

The Portfolio Holder explained that Option 1 would ensure consistency between Council Tax Support calculations and DWP benefit rates, providing clarity and stability for claimants while maintaining the sustainability of the scheme.

By contrast, Option 2 would generate a modest saving by retaining 2026/27 allowance and premium levels. However, it would reduce the level of support available to all working-age claimants, increasing their council tax liability. It was considered that this approach could create confusion, increase financial pressures on claimants and result in additional administrative demand for the Council.  ...  view the full minutes text for item 17