To consider the final proposals for the 2020/21 Local Council Tax Support Scheme.

The Portfolio Holder for Finance presented a report that enabled consideration of the Council’s Local Council Tax Support Scheme.  The Local Government Finance Act 2012 set out the process by which Councils must approve a Local Council Tax Support scheme.  Regulations included protection of pensioners but allowed Councils to make changes in the way that support was calculated for working age claimants.

Following which it was Proposed and Seconded

‘1.        That Council approves, the Executive Board recommendations:-

a)         Uprating and harmonisation of the scheme as appropriate to the DWP welfare reforms in Housing Benefit and the prescribed scheme for pensioners for 2020/21 and future years, and

b)         Introduce a link to the award of Universal Credit, removing the need for customers to make a separate application for Council Tax Support, and

c)         Introduce a £15 weekly (£65 monthly) tolerance rule for Universal Credit customer change in earnings.

2.         That Council delegate: -

a)         Approval for the 2020/21 final scheme policy to the Section 151 Officer in consultation with the Portfolio Holder for Finance, and

Approval for administrative and minor changes for future year schemes to the Section 151 Officer in consultation with the Portfolio Holder for Finance’

During his introduction, the Portfolio Holder for Finance made reference to paragraphs 2.4 and 2.5 of the report presented that referenced the core principles of East Lindsey’s local Council Tax Scheme as:

•           Protection for: - People over pension age (as prescribed by Government), All War Disablement Pensioners, War Widow and War Widowers;

•           People with children, disabilities or caring responsibilities would be supported:- Retention of the core features and continued application of the wide range of provision in the previous Council Tax Benefit (CTB) scheme that recognised the additional needs of the disabled, those with children and those with caring responsibilities;

•           Incentives to work would be supported: - Reference was made to the retention of provision within the previous Council Tax Benefit scheme, thereby maintaining the rate at which support was withdrawn as income increases. 

The Portfolio Holder made further reference to paragraph 4.4 of the report presented that recommended that for future years, scheme charges that were minor or administrative were delegated to the Section 151 Officer in consultation with the Portfolio Holder for Finance.  It was noted that changes that were fundamental and could change the core principles and characteristics of the scheme, would be considered by Executive Board and be subject to consultation as part of the scheme decision making process.

Further reference was made to:

·         Linking Council Tax support with universal credit would make it simpler and more timely for customers to access CTS, preventing delay and potential loss in support (under scheme rules, if an application was made late it could only be backdated for one month);

·         Introducing a tolerance rule for the revision of earnings at £15 per week (£65.00 per month) would ensure smoothing of customers fluctuating UC awards, and not disadvantage those customers receiving greater or occasional beneficial change.  Officers would have discretion to update subject to individual circumstances;

Following which, the Portfolio Holder invited any questions:

·         A Member queried if the £15.00 tolerance rule would impact on the amount of Council Tax benefit they received;

·         A further question was asked in respect of care leavers, it was highlighted that the County Council was considering changing the threshold to age 25 and was the District Council likely to follow suit?

In response, the Portfolio Holder for Finance advised that changes up to £15.00 per week whether positive or negative would not impact on how Council Tax benefit was applied.

With regard to the scheme for care leavers, the Portfolio Holder advised that he would be minded to recommend to Council at the appropriate time.

RESOLVED

1.         That the following Executive Board recommendations be approved:-

a)         Uprating and harmonisation of the scheme as appropriate to the DWP welfare reforms in Housing Benefit and the prescribed scheme for pensioners for 2020/21 and future years, and

b)         Introduce a link to the award of Universal Credit, removing the need for customers to make a separate application for Council Tax Support, and

c)         Introduce a £15 weekly (£65 monthly) tolerance rule for Universal Credit customer change in earnings.

2.         That Council delegate: -

a)         Approval for the 2020/21 final scheme policy to the Section 151 Officer in consultation with the Portfolio Holder for Finance, and

Approval for administrative and minor changes for future year schemes to the Section 151 Officer in consultation with the Portfolio Holder for Finance.