Agenda item - COUNCIL TAX REDUCTION SCHEME 2023/2024

REPORT OF THE SERVICE DIRECTOR – CUSTOMERS

To seek Councils approval to adopt a new Council Tax Reduction Scheme for 2023/2024

RESOLVED: That council:

(1) Noted that a full review of the Council Tax Reduction Scheme had taken place and that consultation with the public and Major Precepting Authorities had taken place.

(2) Noted the aim of the review had been to introduce a new scheme that will:

· enable us to increase the overall level of support for the lowest income households;

· reduce the administrative burden placed on the Council following the introduction of Universal Credit and;

· make the scheme easier for our customers to understand and calculate entitlement.

(3) Approved the adoption of a new banded scheme for working age applicants from 01 April 2023.

(4) Approved the use of the Council Tax Hardship Grant to fund a discretionary scheme to provide additional transitional support where appropriate and that decisions regarding Discretionary support are delegated to the Service Director Customers in consultation with the Executive Member for Finance and IT.

(5) Noted that the new scheme may increase the costs from those of the current scheme, any increase will be split between the Council and its Major Precepting Authorities. The Council’s share is expected to be around 12.5%.

REASON FOR DECISIONS: To ensure that the Council has a fit for purpose Council Tax Reduction Scheme that:

· Provides the greatest support to the lowest income households.

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

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

Audio recording – 102 minutes 26 seconds

N.B. At the start of this item Councillors Amy Allen, Daniel Allen and Phil Weeder notified the Chair of conflict due to their receipt of the Council Tax Reduction Scheme and would therefore not take part in the debate and left the Chamber for the duration of the item.

Councillor Michael Muir raised a Point of Order and noted that Members who were more than two months behind on Council Tax could not take part in this debate or vote. The Monitoring Officer noted that this was the case when setting the budget. The Monitoring Officer confirmed, having sought advice from the Service Director – Resources, that Members could vote on this item, even if in Council Tax arrears. However, would not be able to vote if this was the case when setting the Council’s budget.

Councillor Ian Albert presented the report and advised of the following:

· There was a requirement to approve a scheme for the year ahead annually, and previously annual updates had remained largely the same.

· A full review had now taken place and a banded scheme had been suggested, with work on this conducted over the last year supported by a consultant, David Airey.

· It would remove the burden caused by the introduction of Universal Credit.

· He thanked the consultant and Officers who had worked to produce the proposed scheme.

David Airey, a consultant working with North Herts Council on the Scheme, advised Members of the following:

· His consultancy office had supported over 250 Local Authorities with their Council Tax Reduction schemes.

· The North Herts scheme to date had served well, but the introduction of Universal Credit had made current reduction schemes unsustainable.

· These proposals would apply to working age taxpayers, the pension age scheme was run by central government.

· This proposed scheme would increase support for the lowest income bands, simplify the scheme, be fit for the future and put the process in the right direction.

· This scheme would be robust enough to last for a good number of years.

Councillor Ian Albert proposed and this was seconded by Councillor Elizabeth Dennis-Harburg.

Councillor Ruth Brown commented that she was supportive of the scheme, which had been made simpler to administer and therefore more cost effective. It was also simpler for residents to understand and targeted those most at need residents. Previously everyone had paid some Council Tax, but this scheme would mean some, means tested, residents would pay nothing. The proposed transition period would ensure that those who were to lose from the changes would be supported across to the new scheme.

Councillor George Davies noted that the figures from public consultation on the scheme detailed that 74% were not currently in receipt of Council Tax reduction, but 67% of respondents were in favour of the scheme. This could be that those in receipt do not support the scheme and it would be useful for future to see a breakdown between those respondents in receipt of the reduction scheme currently and those not.

Councillor Ian Albert summarised that this was a commendable report which would be providing discretionary support to those residents facing individual hardship and these instances would be advised on a case-by-case basis. The scheme had been consulted on with Citizens Advice and they were supportive of the scheme.

Having been proposed by Councillor Albert and seconded by Councillor Dennis-Harburg, following a vote, it was: