Issue - meetings

REPORT OF THE SERVICE DIRECTOR – CUSTOMERS

To consider and recommend to Council the continuation of the banded scheme for working age applicants which remains largely unchanged for 2025/2026.

RESOLVED: That Cabinet:

(1)   Noted the cost of the scheme was currently £9.18m noting that this is not an actual cost but a reduction of the amount of council tax collected.

(2)   Noted that the Discretionary Exceptional Hardship Scheme, previously agreed to provide additional transitional support would continue to be used to support cases of exceptional hardship.

RECOMMENDED TO COUNCIL:  That the continuation of the banded scheme for working age applicants which remains largely unchanged for 2025/2026, a small adjustment to the income bands to reflect CPI has been incorporated to ensure the scheme continues to support those most in need.

REASON FOR RECOMMENDATION:  To ensure that the Council has a Council Tax Reduction Scheme that continues to:

·       Provide the greatest support to the lowest income households.

·       Reduce the administrative burden that has been placed on the Council since the introduction of Universal Credit (UC).

·       Be simple to understand, meaning that customers will be able to calculate entitlement and assess the impact of potential changes in circumstances.

Audio recording 54 minutes 32 seconds

Councillor Ian Albert, as Executive Member for Finance and IT, presented the report entitled ‘Council Tax Reduction Scheme 2025/26’ and advised that:

·       The Council was required to review its Council Tax Reduction Scheme (CTRS) every financial year.

·       The introduction of a banded scheme in 2023/24 was now in its second year.

·       The CTRS scheme had been reviewed and no significant changes were required.

·       A small adjustment had been made to reflect the Consumer Price Index (CPI), to ensure the scheme continued to support those residents in most need.

·       There was a recommendation for increase in bands in the coming financial year to align with the CPI for 2025/26. This increase would be 2.7% for three bands and 1.7% for all others.

·       The CTRS was divided into two schemes, one for pension age applicants and one for working age applicants.

·       The CTRS cost of 9.18 million was shared between Hertfordshire County Council, North Herts District Council and the Police and Crime Commissioner.

·       The Discretionary Hardship Scheme was used to support cases of exceptional need when required.

Councillor Ian Albert proposed and Councillor Mick Debenham seconded and, following a vote, it was:

RESOLVED: That Cabinet:

(1)   Noted the cost of the scheme was currently £9.18m noting that this is not an actual cost but a reduction of the amount of council tax collected.

(2)   Noted that the Discretionary Exceptional Hardship Scheme, previously agreed to provide additional transitional support would continue to be used to support cases of exceptional hardship.

RECOMMENDED TO COUNCIL:  That the continuation of the banded scheme for working age applicants which remains largely unchanged for 2025/2026, a small adjustment to the income bands to reflect CPI has been incorporated to ensure the scheme continues to support those most in need.

REASON FOR RECOMMENDATION:  To ensure that the Council has a Council Tax Reduction Scheme that continues to:

·       Provide the greatest support to the lowest income households.

·       Reduce the administrative burden that has been placed on the Council since the introduction of Universal Credit (UC).

·       Be simple to understand, meaning that customers will be able to calculate entitlement and assess the impact of potential changes in circumstances.