Issue - meetings

REPORT OF THE SERVICE DIRECTOR – CUSTOMERS

For Council to consider and approve the Council Tax Reduction scheme for 2025/26.

RESOLVED: That Council:

(1)   Approved 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.

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

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

REASONS FOR DECISION: To ensure that the Council has a Council Tax Reduction Scheme that continues to:

(1)   Provide the greatest support to the lowest income households.

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

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

Audio recording – 1 hours 13 minutes 48 seconds

Councillor Daniel Allen presented the referral from 8A Cabinet stating:

·       Each year the Council was required to review its Council Tax Reduction Scheme (CTRS) in accordance with the requirements of the schedule 1A of the Local Government Finance Act 1992 and to either maintain the scheme, revise the scheme, or replace it.

·       The Council carried out a full review of its Council Tax Reduction Scheme in 2022/23. The review resulted in the introduction of a banded scheme from 2023/24. The new scheme was now coming to the end of its second year.

·       Following a review two adjustments were needed in 2024/25, these were in relation to the Post Office compensation scheme and an uplift to the bands to reflect the Consumer Price Index.

Councillor Ian Albert presented the report entitled ‘Council Tax Reduction Scheme 2025/2026’ and highlighted the following:

·       The adjustments were made to continue to support those in most need, the council has enhanced its policy on handling and investigating fraud.

·       The CTRS was divided into two Schemes one for working age, which accounts for two thirds of the claimants and one for pension age, the other third.

·       The banded scheme was effective as it had reduced the administrative burden and feedback received was that it was now easier to understand.

·       A hardship scheme was introduced, but the take up was low with just 6 applications in the year 2023/24 and no applications in the year 2024/25.

·       It was recognised that higher inflation may negatively affect some therefore a recommendation had been included to increase the bands to mitigate this.

·       For year 2025/26 the Cabinet reviewed options but apart from the two mentioned above they were decided against to reduce hardship to the constituents as well as cost to the Council.

·       The CTRS in 2024/25 cost approximately £9.18m, with these costs shared between the Council and the Major Precepting Authorities which were approximately 76% County Council, 12% Police and Crime Commissioner, 12% District Council.

·       The reduction to the tax base resulted in an estimated reduction in funding for North Herts of £12,000.

As part of the debate Councillor Matt Barnes thanked Councillor Ian Albert for providing a detailed introduction which answered outstanding questions and advised he would support the recommendations.

Councillor Ian Albert proposed, and Councillor Daniel Allen seconded and, following a vote, it was:

RESOLVED: That Council:

(1)   Approved 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.

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

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

REASONS FOR DECISION: To ensure that  ...  view the full minutes text for item 83