Agenda item

The Council received a report on its statutory duty to consider annually whether to revise its Local Council Tax Support Scheme (LCTSS), replace it with another or make no changes.  The Council was obliged to consult with interested parties if it wished to revise or replace the scheme.  In addition, the Council had to approve a scheme for the 2020-21 financial year by 31 January 2020.  

In 2019-20, a number of minor changes were made to the scheme.  For 2020-21, it was proposed to introduce the following changes, which could be met from within the existing revenue budget:

• Increase Premiums to ensure that the help given does not unduly reduce due to inflation. 
• Increase Non-Dependant Deductions to reflect an expectation that their contribution to the household expenses should increase each year.
• Update Income and Capital Disregards to include “the Windrush Compensation Scheme”.  This mirrored the government’s change to the Pension Age scheme, and ensured that recipients were not penalised for receiving compensation.  It also ensured that claimants were treated consistently across all schemes.

·       Amend the definition of pension age and working age in accordance with the government’s changes to the Council Tax Reduction Schemes (Prescribed Requirements) (England) Regulations 2012 for 1 April 2020, once they were received.

A stakeholder consultation was held between 16 September and 13 October 2019, the results of which were set out in the report.  It was noted that although the County Council and Police and Crime Commissioner had supported the changes, the overall response did not overwhelmingly support for or against any the proposed changes for 2020-21. 

Councillors noted that the Council continued to operate in a tough financial climate and that its medium-term financial plan position remained challenging.  However, it was recognised that passing on further savings via the LCTS scheme in 2020-21 would place additional financial pressure on vulnerable households.  A discretionary hardship fund would help support any resident suffering adversely from the consequences of savings in welfare support over the past seven years, in addition to the proposed changes for 2020-21. 

The Executive had considered the report at its meeting on 26 November 2019 and had endorsed the recommendation therein.

Upon the motion of the Lead Councillor for Housing, Access and Disability, Councillor Angela Goodwin, seconded by the Lead Councillor for Finance and Assets, Customer Service, Councillor Joss Bigmore, the Council:

RESOLVED:

(1)    That the current LocalCouncil Tax Support Schemebe amended for 2020-21, as set out in detail in Appendix 2 to the report submitted to the Council, with effect from 1 April 2020.

(2)    That the Council maintains a discretionary hardship fund of £40,000 in 2020-21.

Reasons:

(1)   To ensure that the Council complies with legislation to implement a LocalCouncil Tax Support Scheme from 1 April 2020.

(2)   To maintain a discretionary fund to help applicants suffering from severe financial hardship.