Issue - meetings

(A report by Christine Marshall, Deputy Chief Executive - Corporate Development (S151))

(A report by Christine Marshall, Deputy Chief Executive (Corporate Development) & S151)

Councillor Sandeep Ghosh presented the Local Council Tax Support Scheme 2025/26 report in respect of the final Council Tax Support scheme for 2025/26, having regard to the fundamental review carried out this year and the feedback obtained through the consultation process.

Members discussed the report and commented as follows:

·       Recognition was given to members of the community that had responded to the consultation.

·       In relation to the low number of responses, the importance of finding more meaningful ways of reaching out to residents to boost involvement was noted.

·       Members noted how the scheme would bring administrative and yearly savings to families which were estimated up to £300.

·       The Chief Executive clarified that the Council tax support scheme was a decision for the Borough Council to make, however it clearly would have an impact on the upper tier authority as well and that the County Council would also be going through a similar process. He advised that members could proceed with their decision at present and that by January’s Full Council meeting the authority would be further on in terms of understanding the overall budget.

·       Research by officers was considered to inform on the impact related to the alteration of the upper capital limit.

·       Members were advised that implementation of the Scheme would increase the total cost by around £384,000, of which £39,000 (10.3%) would be a cost to the Council

·       Members highlighted the need for the Council to support its residents and address child poverty, especially families with children.

·       Concerns were shared regarding the translating costs linked to the implementation of the Scheme impacting the budget and consequently triggering cancelations on future grants, considering the IDB cost increasing to over £50 million nationally, and forecast decreases to the Bank of England’s interest rate that will impact on the Councils investment income.

The recommendations were moved by Councillor Anne Dorrian and seconded by Councillor John Baxter.

RESOLVED:

1.     That the following scheme options be recommended to Full Council:

a.     Increase the maximum CTS for households with children to 100% and 85% for other households.

b.    Remove the earnings disregard to Universal Credit claims.

c.     Introduce a standard £10 rate for non-dependant deductions.

d.    Introduce a minimum award of £1 per week.

e.     Reduce the Upper capital limit to £10,000.

f.      Replace the three-month review with a threshold for changes in Universal Credit, with discretion for flexibility at £30 per week.

g.    Uprate in line with DWP uprating amounts for 2025/26.

2.     That authority be delegated to the Section 151 Officer, in consultation with the Portfolio Holder for Finance, to finalise the 2025/26 final scheme policy, including administrative and minor changes;

3.     That an Exceptional Hardship Fund, to operate alongside the Council Tax Support scheme, be introduced; and

4.     That authority be delegated to the Section 151 Officer, in consultation with the Portfolio Holder for Finance, to finalise the fund budget and scheme detail.

[Councillor Emma Cresswell entered the meeting at 7.03pm during consideration of the above item.

The Head of Revenues  ...  view the full minutes text for item 49

A report by The Head of Revenues and Benefits

The Portfolio Holder Councillor Sandeep Ghosh presented the report supported by the Head of Revenues and Benefits. The report updated Members on the performance of the current Council Tax Support (CTS) scheme and provided details of the fundamental review in respect of 2025/26.

Boston’s scheme currently provided for a maximum 75% support.  Since its introduction in 2013, some changes to the scheme had been made, including restriction to Band D Council Tax liability, and discretion to assess Universal Credit earnings claims every three months.  In 2024/25, a new class for Care Leavers was introduced.

Cabinet had previously recognised the need for a fundamental review of the scheme, with the current scheme now dated, being relatively unchanged since its introduction in 2013, and, having regard to the rollout of Universal Credit which replaced legacy benefits (including Housing Benefit). 

The report provides information on the scheme review, and the options for 2025/26.

The total caseload and expenditure, at July 2024, was:

A caseload comparison of data from 2023 showed a small overall increase of 190 live claims, being a reduction of 2 in pensioner group and an increase of 192 Working Age group, which may reflect the economic pressures on households.

The cost of Council Tax Support was shared across major preceptors as part of the collection fund accounting process:

The analysis undertaken identified the make-up and distribution of CTS across Working Age (WA) household types, using data from May 2024.  The data identified that almost 75% of the WA caseload received the current scheme maximum 75% support.

A further analysis of the correlation between households currently receiving Council Tax Support and the level of Council Tax arrears in financial 2023/24 but did not include households currently on CTS with arrears in earlier years, nor did it include arrears for households which received CTS at some point previously but were not currently in receipt of CTS.  As such the actual overall position of arrears in relation to CTS households would be greater than indicated.  The data showed that almost 55% of the amount of arrears in CTS recipient households was in households with children.

The fundamental review had provided Boston BC with the opportunity to look at its current scheme and consider how it wishes to better support residents in the future, having regard to affordability.  Engagement through the review has provided Members with information on scheme approaches and modifications, and the options proposed from the steer provided will enable consultation on proposals that provide a balance of recognising the need for increasing support for families, and the need for administrative simplification.  ...  view the full minutes text for item 115

(A report by Christine Marshall, Deputy Chief Executive & S151 Officer)

Portfolio Holder: Councillor Sandeep Ghosh

Councillor Sandeep Ghosh presented a report which provided an update on the Boston Borough Council’s Local Council Tax Support current scheme and presented scheme modification options for the working age Council Tax Support scheme to take forward to public consultation with a view to helping the Council decide it’s local scheme for 2025/26.

Members noted that the results of the consultation would be brought back to Cabinet to make its final recommendation to Full Council.

Members discussed the report and commented as follows:

·       It was important that members had been given the opportunity to express their views.

·       The work had focussed on the residents that needed help at a time when the cost of living was hitting everyone.

·       Thanks were given to the Councillors and Officers involved in the work.

·       It was noted that the scheme did not cover pension age residents, where national rules applied.

The recommendations, as written in the report, were moved by Councillor Sandeep Ghosh and seconded by Councillor Emma Cresswell.

Councillor Anne Dorrian proposed an amendment to the recommendations in that the following options, in 6.3 within the report, be consulted on:

A.    Modify the maximum CTS amount.

         i)        Increase the maximum CTS for households with children to 100%, and to 85% for other households.

B.    Remove the earnings disregard for Universal Credit claims.

C.    Introduce a standard £10 rate for non-dependant deductions.

D.    Introduce a minimum weekly award of £1.00 per week.

E.    Reduce Upper Capital Limit

F.    Remove the current three-month review period on Universal Credit earnings cases and replace with a threshold for earnings changes of

£30 per week (£130 per month) or

£50 per week (£217 per month)

with discretion.

G.   Introduce a Discretionary Exceptional Hardship Payment Fund

H.    Update the 2025/26 scheme in line with DWP uprating.

The proposed amendment was seconded by Councillor Dale Broughton.

The amended recommendations were moved by Councillor Anne Dorrian and seconded by Councillor Dale Broughton.

RESOLVED:

1.     That the modification options, presented in section 6 within the report, be noted;

2.     That options A (i) and B – H, as outlined in section 6.3 within the report, be consulted upon; and

3.     That the consultation, and delegated oversight of the consultation approach to the Section 151 Officer in conjunction with the Portfolio Holder for Finance, be approved.

[The Head of Revenues and Benefits PSPSL left the meeting, following consideration of the above item, at 7.10pm.]