Agenda item - COUNCIL TAX REDUCTION SCHEME 2018/2019

REPORT OF THE HEAD OF REVENUES, BENEFITS AND IT

To update Cabinet on progress on the Council Tax Reduction Scheme and to consider whether or not any changes should be made for 2018/19.

RESOLVED:

(1) That the current position relating to the current and previous financial years on the Council Tax Reduction Scheme (CTRS) be noted;

(2) That there be no substantive changes to the Council Tax Reduction Scheme for 2018/19;

(3) That Cabinet is minded to recommend to the Council at its Meeting on 18 January 2018 that changes be made to the CTRS to implement the following to ensure the consistency of the Scheme with other welfare benefit changes:

· That capital and income payments of Bereavement Support Payments should be disregarded for the purposes of CTRS; and

· That any payments made by the London Emergencies Trust (LET) or the We Love Manchester Emergency Fund (WLMEF) should be disregarded for the purposes of CTRS,

and that the Head of Revenues, Benefits & IT should carry out the necessary public consultation;

(4) That the Executive Member of Finance and IT be consulted on the content of the consultation questionnaire;

(5) That it be noted that the level of Scheme funding to be allocated to Parish, Town and Community Councils will be the same as 2017/18; and

(6) That Cabinet considers at its meeting on 19 December 2017 whether there is scope to amend the value of awards, taking into consideration any knowledge at the time on likely Council Tax increases for 2018/2019.

REASON FOR DECISION: To decide on whether or not there will be changes to the Council Tax Reduction Scheme for 2018/2019, thereby enabling the required public consultation to be carried out.

The Executive Member for Finance and IT presented a report of the Head of Revenues, Benefits and IT in respect of the Council Tax Reduction Scheme (CTRS) 2018/19.

The Executive Member for Finance and IT advised that should the Council wish to change the CTRS for 2018/19 then it would need to carry out a public consultation exercise. Historically, where the Government had changed regulations relating to Housing Benefit matters, the Council had sought to replicate this as far as possible through the CTRS.

The Executive Member for Finance and IT drew attention to Section 8 of the report, which proposed two minor changes to the proposed CTRS for 2018/19, namely the Disregard of Capital and Income Payments for Bereavement Support Payments; and the Disregard of Payments made by the London Emergencies Trust and the We Love Manchester Emergency Fund. It was anticipated that neither of these minor changes would impact on the overall operation of the CTRS. A public consultation exercise would be undertaken, but would be a fairly low key exercise.

The Executive Member for Finance and IT referred to the charts in Paragraphs 7.7 and 7.8 of the report, which showed that the number of claimants under the CTRS had reduced from 9,100 in 2013/14 to 7,350 in 2017/18.

The Executive Member for Finance and IT explained that there would be risks going forward, in terms of the impact of Universal Credit, and the extent to which Hertfordshire County Council might wish to increase its Council Tax precept. The current £660,000 scheme surplus would be retained to safeguard against further claims.

In respect of proposed Recommendation 2.6 of the report, it was agreed that the word “increase” be changed to “amend”.