Agenda item

To determine the Council Tax Support scheme for 2023/24 (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 sought determination of the Council Tax Support Scheme for 2023/24.     

In November, Cabinet had agreed to consult on continuation of the current scheme, uprated in line with DWP, and to seek views on increasing the maximum amount of CTS for 2023/24.

The scheme for 2023/24 was being determined with the backdrop of the current cost of living and energy costs crises, and the report highlighted some of the other support available to customers.  In addition, details had been received of a new government Council Tax Support Fund initiative which would provide a further discount of up to £25 off Council Tax bills for households in receipt of CTS.  This information was not included within the report as details had been received after it had been written.

In accordance with legislation, consultation with major preceptors, the public and other stakeholders had been carried out.  There was general support for continuation of the current scheme, although, due to the low response rate to the consultation, there was no overriding view on the proposal to increase the maximum level of support.

Section 4 of the report outlined an administrative/minor change to the tolerance rule for Universal Credit changes.  This would continue to provide the same benefit of smoothing fluctuating awards, providing some stability by disregarding small changes each month, and would help to improve administrative efficiency.  It was proposed that this change was made in the final rules for 2023/24 as an ‘administrative/minor change’ delegated to the S151 Officer and Portfolio Holder for Finance, Partnerships and Commercialisation.

Section 5 of the report provided information for the Cabinet to consider as to whether it felt it was timely to commence a more fundamental scheme review for future years.  It was made clear that this would not form part of the scheme decision for 2023/24

The following points were raised:

·         In response to whether SHDC was looking to align its approach with the other authorities within the S&ELCP, it was confirmed that this was the case.

·         Cabinet members agreed that a fundamental review of the Council Tax Support Scheme should be pursued for future years, although this would not affect the scheme decision for 2023/24.

DECISION:

1)    That Cabinet recommend that Full Council approve:

1. Continuation of the current Local Council Tax Support scheme, including uprating in line with DWP’s annual update of allowances and premiums for housing benefit for 2023/24; and

2. An increase in the maximum level of support for working age claimants from 70% to 75%.

2)    That approval be delegated for the 2023/24 final scheme to the Deputy Chief Executive – Corporate Development (S151), in consultation with the Portfolio Holder for Finance, Partnerships and Commercialisation in line with the report, and any administrative and minor changes;

3)    That a more fundamental scheme review be progressed for future years (this would not form part of the scheme decision for 2023/24).

RECOMMENDATIONS TO COUNCIL:

That Full Council approve:

1. Continuation of the current Local Council Tax Support scheme, including uprating in line with DWP’s annual update of allowances and premiums for housing benefit for 2023/24; and

2. An increase in the maximum level of support for working age claimants from 70% to 75%.

(Other options considered:

·         The ‘do nothing’ option was considered, which would see the current scheme retained, uprated in line with an earlier decision of the Council.

Reasons for decision:

·         Full Council must make any revision to its scheme, or any replacement, and agree its final scheme no later than 11 March 2023 in respect of the 2023/24 financial year;

·         Retention of the key principles and approach of the current scheme and uprating would provide continuity for customers and, increasing the maximum support to 75% would provide additional financial support for those on lowest incomes facing the cost-of-living challenges;  

·         It was timely to commence a fundamental review of the scheme, which would give the opportunity to consider options which simplified the scheme for the customer, was more efficient to administer, and more fit for purpose for the future).