Agenda item - Pre-Scrutiny - Council Tax Support Scheme Review

Agenda item

Pre-Scrutiny - Council Tax Support Scheme Review

Minutes:

The Board received a report in relation to the Local Council Tax Support Scheme (CTSS) for 2019/20. The Revenue Services Manager was present at the meeting and provided information on the work undertaken by the Customer Access and Financial Support Service to date in respect of the redesign of the CTSS for implementation by 1st April, 2019 and set out the proposals for public consultation.

 

The report recommended that approval besought for the Cabinet to agree that the Council undertook a formal consultation with the major preceptors and the public on the proposed design of a revised scheme, which would take place for eight weeks from 1stOctober, 2018. The results of the consultation would be presented to the Overview and Scrutiny Board and Cabinet in January 2019, with any recommendationsgoing forward to full Council in February, 2019.

 

The following key issues were highlighted:

 

·         Care leavers would be provided with 100% Council Tax support up to the age of 21.

·         Frequent changes to Universal Credit cases were received from the Department for Work and Pensions (DWP) requiring a change to CTS entitlement. On average 40% of Universal Credit claimants had between eight and twelve changes in entitlement per annum.

·         The income changes for claimants migrating to Universal Credit were unknown and therefore the profiling that had been carried out was based on existing legacy benefits across the current caseload. The predicted expenditure was therefore subject to change when claimants migrate from legacy benefits to Universal Credit.

 

It was proposed that the current means tested scheme was replaced by a simple income band model. The indicative example of potential Grid Model Approach was provided in the report. Members were informed that the full impact model exercise would be completed by the end of the week and an update would be provided to Members.

 

The Chairman raised concerns that he could not make a decision at this stage as the full information was not available and that the actual model needed to be considered rather than the indicative model. The Revenue Services Manager informed Members that the modelling may require amendment after the consultation in terms of banding. He further stated that the modelling exercise was necessary as this would determine who would and would not benefit from the proposed scheme. 

 

Councillor B. Cooper, the Portfolio Holder for Finance and Enabling informed Members that the recommendation was to ask Cabinet to approve the consultation and was not the approval of the final document. He further clarified that the final document would be considered at the Overview and Scrutiny Board prior to approval at Council in February, 2019.

 

 

In response to Members’ question, the Revenue Service Manager stated that other authorities were also proposing to move to a banding discount scheme and that Redditch Borough Council was also proposing a similar scheme.

 

Clarity was sought that the proposed schemes were being modelled with a capital limit for working age claimants would be set at £6,000 and £16,000 limit for pensioners.

 

As the formal consultation was proposed to take place from the 1st October, 2018, it was requested that Members to be minded to approve the recommendation of the consultation in order to prevent any delays. The Chairman stressed that the final consultation document was required before any decision was endorsed.

 

The Chairman proposed that, as the report was not clear who would or would not benefit from the scheme, that consideration of the Local Council Tax Support Scheme be deferred pending all information being provided. It was further requested that the formal consultation commence in mid October, 2018.

 

Whilst Members were conscious of the timescale, it was proposed that consideration of the Local Council Tax Support Scheme for 2019/20 be deferred to the next meeting of the Overview and Scrutiny Board on 1st October, 2018, pending all information being provided and that the Cabinet consider the report on 3rd October, 2018 

 

RECOMMENDED that consideration of the proposed Local Council Tax Support Scheme for 2019/20 be deferred, pending further information.

 

Supporting documents: