Agenda item

A report by the Deputy Chief Executive – Corporate Development Section. 151 Officer.

The Portfolio Holder presented the report and advised that Council Tax Support (CTS) provided financial assistance to people on low incomes, by way of reduction in Council Tax.   As part of the Government’s programme of welfare reform, the previous Council Tax Benefit (CTB) scheme was replaced by localised support arrangements.  From April 2013, Councils had been required to establish local CTS schemes. The support was provided in the form of a discount applied to the Council Tax bill.  The Welfare Reform Act also contained provisions regarding the introduction of Universal Credit (UC) which impacted on the administration of Housing Benefit. UC was introduced for the Boston area in April 2015, and the full service was rolled out in September 2018, for new claims only.  Full migration could be as late as 2028. Whilst 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.  For pensioners there should be no change in the level of awards because of this reform. That included both existing and new benefit claimants.  (The scheme for pensioners continued to be prescribed by government, providing up to 100% support). Councils were required to also consider ensuring support for other vulnerable groups. Local schemes should support work incentives and avoid disincentives to move into work. Boston Borough Council’s scheme continued to deliver those intentions. 

Committee deliberation followed which included:

On questioning the criteria used for assessment of applications members were advised that the support was for people on low income whose needs were not met by their income and also for people on welfare support and also for those who were unable to work, with many being on Universal Credit.   Household circumstances were taken into consideration along with any capital levels.  Members were further advised that the Council had no remit in encouraging people on Universal Credit who were physically fit to source employment, the Department of Work and Pensions had responsibility for monitoring those in receipt of Universal Credit and their endeavours to gain employment. Clarification was also given that the state pension was a prescribed scheme on which the Council had no discretion.

On questioning the potential increase to the Council for the forthcoming year, members were advised that the cost indicated was a full cost the same as he previous years.  However, increases would arise by de-fault of the increase in Council Tax and it was felt reasonable to expect an increased take up of the scheme increasing costs further.

Additional comments noted that prior to 2012 Council Tax allowed households 100% remittance which then reduced but ring-fenced for pensioners and continued to be so.  Further comments suggested changing the rate from 75% to 100% with advice given that other Councils did make up the shortfall, however, it was agreed and realised that such discussion was not relevant to the scheme under consultation.

RECOMMENDED:

That the Corporate and Community Committee considered and provided feedback on the Policy to inform Cabinet’s considerations