To consider the Council Tax Support Scheme 2025/26.

1.       That the Local Council Tax Support Scheme 2025/26 Scheme be revised to include the following modifications:

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

b.               Remove the earnings disregard to Universal Credit claims.

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

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

e.               Increase the threshold for changes in Universal Credit to £30 per week, with discretion for flexibility.

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

2.       That the decision be recommended to Full Council for approval.

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

4.       That an Exceptional Hardship Fund to operate alongside the Council Tax Support scheme be introduced.

5.       That decision on the fund budget and scheme detail for an Exceptional Hardship Fund be delegated to the Section 151 Officer, in consultation with the Portfolio Holder for Finance.

A report was presented that sought an Executive Board decision on the final proposals for the 2025/26 Council Tax Support scheme, having regard to the fundamental review carried out this year, and the feedback obtained through the consultation process to be presented to Council for approval on 5 March 2024.

The full background to the Council Tax Support Scheme was set out at Section 1 of the report with the 2025/26 Scheme Modification Proposals set out at Section 2, pages 146 to 148 of the Agenda refers.

During his introduction, the Portfolio Holder for Finance referred to the consultation that had taken place and advised that a total of 143 responses had been received.  Whilst this was an increase on the 103 responses received the previous year, it had to be recognised this was still a low response rate and the results could not be relied upon as being wholly representative or statistically significant.  However, Members were advised that they must take the consultation responses into account when making their decision.

The Portfolio Holder for Finance referred to the feedback from the public consultation as summarised at Section 3.4 of the report, page 149 of the Agenda refers.

During discussion, the Leader of the Council stated that the scheme had been deeply discussed and issues considered carefully by Portfolio Holders in briefing meetings having all issues put before them.  Members were then referred to the recommendations as set out in the report.

The Leader of the Council stated that his preference was for Recommendation 1 (i) - for Executive Board to approve revising its scheme with any or all of the options a to f, rather than Recommendation 1 (ii) for the Council to retain its current Council Tax Support Scheme, updated in line with DWP uprating for 2025/26, and to further approve Recommendations Nos 2 to 5.  The Portfolio Holder for Finance added that he was happy to support this.

The Portfolio Holder for Operational Services referred to the table which summarised feedback from the public consultation, page 149 of the Agenda refers.  In relation to 43.2% agreeing with ‘Increase the maximum CTS to 85% for households with children’ the Portfolio Holder for Operational Services queried whether a breakdown could be provided for that demographic.  In response, the Head of Revenue and Benefits advised that unfortunately the survey did not capture this information.

The Portfolio Holder for Community Safety, Leisure & Culture and Carbon Reduction stated that he fully supported the proposed recommendations as most households were stretched and challenged financially when they had children and this was when they would benefit the most.

RESOLVED:

1.       That the Local Council Tax Support Scheme 2025/26 Scheme be revised to include the following modifications:

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

b.               Remove the earnings disregard to Universal Credit claims.

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

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

e.               Increase the threshold for changes in Universal Credit  ...  view the full minutes text for item 52