Agenda item

*100

council tax support scheme 2021/22

DECISION

That full Council be recommended to adopt option 2 as set out in the report, a continuation of the current Council Tax Support Scheme uprating in line with the Department of Work and Pensions uprating’s for working age social security benefits and non- dependant deductions, but assess working age applicants who are working and in receipt of universal credit every 3 months.

Portfolio Holders and Officer

JN / GC

REASON FOR DECISION

The Portfolio Holder for Finance introduced a report by the Council Tax and Benefits Manager on the operation of the Council Tax Support scheme to date and the outcome of the consultation process for the 2020/21 scheme.

The report set out the background to the Council Tax Support (CTS) scheme which had been in operation since 2013/14 under the provisions of the Welfare Reform Act.

It was accepted that the outturn performance of the adopted schemes from 2013/14 onwards were broadly in line with original assumptions.  The full service for Universal Credit was rolled out for the Boston area on 12 September 2018, although this was currently only for new claims.  The migration of existing claims was not due for completion until 2023.

Since the introduction of universal credit it had become apparent that those people in receipt, together with earnings and council tax support could have their claims reassessed every month.  If the earnings increased or decreased over that month, the assessment for universal credit would change, consequently creating a reassessment for council tax support.  If council tax instalments changed some applicants may not receive a council tax reminder for 12 months.  There were currently 900 cases where the situation could apply.

Whilst the new regulations provided councils with flexibility to set up their own local arrangements, the Government expressed clear intentions in relation to certain aspects of a local scheme, including:-

• For pensioners there should be no change in the level of awards as a result of the reform.  This included both existing and new claimants.
• Councils were required to also consider ensuring support for other vulnerable groups.
• Local schemes should support work incentives and in particular avoid disincentives to move into work.

The 2021/22 council tax support scheme was consulted on the following options:-

Option 1

Continuation of the current scheme, as it was, with a ‘no change’ approach, uprating the amounts used in the calculation of Council Tax Support for working age claimants in line with Department for Work and Pensions uprating for working age social security benefits and non-dependent deductions.

This option would maintain a consistent approach to Boston’s CTS scheme since its introduction in 2013/14.  It would continue to recognise the additional needs of the vulnerable through the approach to its calculation.

Any further reduction in grant funding or increase in CTS awards would need to be found from other budgets areas or service cuts.   Any consultation process would include this as an option with views on how or what services would be affected.

Option 2

Uprate in line with the Department of Work and Pensions uprating’s for working age social security benefits and non- dependant deductions, but assess working age applicants who are working and in receipt of universal credit every 3 months.

If an applicant had a significant change in their income within the 3 month period the case should be reassessed, this will allow the applicant more consistency with their entitlement and allow the council tax to become due and if the need should arise place the account into the standard recovery cycle.

This option would maintain a consistent approach to Boston’s CTS scheme since its introduction in 2013/14, however it would alleviate the challenges received by the introduction of universal credit. It continues to recognise the additional needs of the vulnerable through the approach to its calculation.

Any further reduction in the grant funding or increase in CTS awards would need to be found from other budget areas or service cuts. It would reduce the need for monthly recalculations which could offer administration savings. Any consultation process should include this as an option with views on how or what services should be affected.

Option 3

Continuation of the 2020/21 scheme, but not apply any up-ratings.  This would result in the up-rating adjustments not aligning with those used nationally.

The Council was required to consult with major preceptors and the public in terms of any scheme changes and the responses were made available as part of the decision making process.  The consultation exercise with major preceptors and other interested parties had run between 4^th September and 2^nd October 2020.

The consultation focused on whether the Council should continue with its current scheme for 2021/22, and asked respondents if they felt this was a fair scheme.  Thirty seven public replies had been received with 72% of those in agreement with the proposal to continue with the current scheme.  The responses from major preceptors also confirmed their agreement to support a scheme that did not increase the financial burden and continued to help balance budgets.

The report had been considered by the Corporate and Community Committee on 15 October 2020.  The Committee recommended that option two, a continuation of the current scheme, but with 3 monthly assessments for applicants who were working and in receipt of universal credit, should be referred to Cabinet and Council for final approval.

Members commended Option 2 to Full Council as it protected vulnerable people and was a positive way forward to give claimants the ability to better budget their finances.

OTHER OPTIONS OR ALTERNATIVES CONSIDERED

As set out in the report.

RECORD OF ANY CONFLICT OF INTEREST

None.

RECORD OF ANY DISPENSATION GRANTED

None.