Agenda item

(A report by Sharon Hammond, Head of Revenues and Benefits)

Portfolio Holder: Councillor Jonathan Noble

The Head of Revenues and Benefits presented a report on the review of the Council Tax Support (CTS) scheme with proposals for the next financial year 2022/23.

The Committee was asked to review the scheme to date and the proposals for the 2022/23 scheme as part of the ongoing consultation and make recommendations on the proposals for Cabinet consideration on 8^th December.  The proposed 2022/23 scheme would be submitted to Full Council for formal approval by Full Council in January 2022.   

The report contained details of the operation of the previous Council Tax Benefit scheme for comparison purposes.  It also contained the projected costs of the scheme.  However, it was pointed out that the level of CTS always fluctuated throughout the year and the exact expenditure would only be known at the end of the financial year.  The costs of the CTS scheme were borne by the major precepting authorities, 11% of which was borne by the Council. 

Members were reminded that the CTS scheme related purely to working age people, as the scheme for pensioners continued to be prescribed by Government and they received 100%.  The Council had taken the local decision to protect war pensioners and this had continued since the scheme’s introduction.  The scheme continued to be means-tested in the same way as the previous benefit scheme.  Entitlement for working age claimants was capped at 75%; therefore, they had to pay at least 25% of their council tax. 

CTS was linked to claims for Universal Credit (UC) and the decision had been taken to uprate CTS in line with the Department for Work and Pensions (DWP). 

Previously, CTS claims had to be reassessed every time there was a change to UC.  However, in 2021/22 a decision had been taken to make a change to the scheme so that any UC changes would only be reassessed every three months, though this could be overridden if necessary.  This provided stability in terms of CTS awards and was working well. 

The DWP had not published its plans yet for completing the full migration to UC for working age claimants and the timescale therefore remained uncertain, but it was now apparent that it would not be complete until 2025.  The numbers claiming UC had significantly increased, particularly since the start of the Covid-19 pandemic. 

In considering the options for the 2022/23 CTS scheme, given the ongoing uncertainties due to the pandemic and the migration to UC, there was no overriding reason for fundamental change at this time.  Reductions in the level of support could have a significant impact claimants’ ability to pay and the Council’s ability to collect money; it would be counter-productive to try to make savings.   

Through the consultation, views for 2022/23 were being sought on whether the Council should retain its current scheme for the next financial year, to provide continuity.  Each year the Government reviewed and, generally, increased the amount people needed to live on for the calculation of welfare benefit.  By applying the same changes to the CTS scheme, the Council would ensure that it remained up to date with the DWP allowances and premiums each year.

Separate to the consultation proposals, an administrative change was proposed for introduction into the CTS scheme, which would not change the core scheme policy, its intent or principles, but would make it easier for new claimants to access CTS.  Most new claims for CTS were received by claimants who had applied for UC.  Applications for UC were made to the DWP, applications for CTS needed to be made to the local authority.  This meant that the claimant had to deal with two organisations and make separate applications to get the help they needed.  Where a UC claimant indicated they would like to apply CTS when making their UC claim, details were sent to the relevant council through the Universal Credit Data Sharing hub (UCDS).  The introduction of a link to the award of UC for CTS would remove the current requirement for the customer to make a separate application for CTS.  It was proposed that for 2022/23 the scheme was amended to enable a UCDS new claim notice from the DWP, to be treated as a CTS application, thereby simplifying the process for the claimant.

Members welcomed the proposals, including the administrative change to link claims for UC to the CTS scheme.

In response to questions, the Head of Revenues and Benefits explained that an element of Government grant funding for the CTS scheme remained, but the amount could no longer be identified.  People who did not claim UC would have to apply directly to the Council for CTS.  There were a number of discounts applicable to CTS, including the single person discount and some discretionary discounts.  The Revenues and Benefits department did have a significantly high workload, particularly as was also responsible for delivering Test & Trace support payments.  The workload was at a peak and it was very difficult to forecast ongoing levels due to the pandemic.  CTS expenditure was currently decreasing, but this was also very difficult to forecast. 

Members expressed concern about the department’s workload and felt that consideration should be given to taking on additional staff.

The Portfolio Holder advised Members that the department had achieved a significant reduction in the backlog of work since the transfer to PSPS.