The Director of Finance submitted a report setting out proposed amendments to the Local Council Tax Reduction Scheme for the 2022/23 financial year to reduce administrative processes for both customers and staff and provide an increased level of support.  An Equality Impact Assessment was attached to the report at Appendix 1 and a table of neighbouring local authority scheme characteristics was set out in Appendix 2.

The report summarised the following proposed changes to the scheme:

·       To require persons of “Working Age” to make a minimum contribution of between 25% and 30% towards their Council Tax liability; the maximum reduction available to persons of “Working Age” would therefore be between 70% and 75% of their Council Tax liability which was an increase in support from the current 65% maximum;

·       To remove the “Working Age” Council Tax Support minimum of £5 per month; removing minimum support levels would avoid claims ending thus reducing the number of re-applications and ensuring customers received the support they were entitled to no matter how small;

·       To increase for Persons of Working Age the upper capital limit from £3,000 to £6,000 and remove the restriction to submit a new claim during the remainder of the billing year where capital was subsequently spent; this change would reduce administration as Department of Work and Pensions data currently available only provided capital data where it exceeded £6,000 in line with the Housing Benefit & Universal Credit Regulations;

·       To allow Persons of Working Age a maximum of one month backdating provision within the scheme; this change would align with the current Housing Benefit & Universal Credit Regulations;

·       To set a standard rate of £10 Non-Dependant Deduction to apply for non-dependants who were both engaged and not engaged in remunerative work; in addition to providing a greater level of support this change would reduce administration for both staff and customers.

For each of the proposed changes the report set out the financial impact on the Council and the number of customers that it was estimated would be affected.

The report noted that a statutory consultation period was required for changes to the Local Council Tax Reduction Scheme.  It was proposed to carry out an online consultation on the options for a period of eight weeks, to allow for consideration of feedback and revised modelling ahead of the Council’s Tax Base setting.

Resolved –

That the options to amend the Local Council Tax Reduction Scheme for implementation from 1 April 2022 be noted and the proposals be agreed for public consultation, in accordance with the timetable set out in the report.