To consider the referral from Cabinet regarding the outcome of the consultation into the proposed amendments to the Council Tax Reduction scheme for 2023/24.

Members considered the referral from Cabinet regarding the outcome of the  consultation into the proposed amendments to the Council Tax Reduction scheme for 2023/24.

Councillor Hilton proposed the recommendations and explained that the Council was obligated in law to review its Council Tax reduction scheme annually. He advised that the review left the council tax reduction rate unchanged at 80% but proposed a number of changes designed to make life easier for CTR recipients and to reduce the Council’s administrative burden. Councillor Hilton explained that five proposed changes were proposed and that three of the five changes only affected working age applicants who were in receipt of both Council Tax Reduction (CTR) and Universal Credit (UC).

He briefly ran through the changes:

Currently anyone in receipt of both Council Tax Reduction (CTR) and Universal Credit (UC) who was working had their CTR altered every time their UC changed as a result of fluctuating changes in earnings. This could result in up to 13 changes per year which was confusing for customers. The proposal was to only re-assess these claims three times per year, unless a customer had a significant change such as starting or stopping work. When re-assessed, all changes would be processed so the overall net financial effect would be the same. This would make things a lot easier for all parties.

The Universal Credit Customers – automatic re-awards proposal would mean that any UC customer who lost entitlement as a consequence of a slightly higher level of income for one UC assessment period of four weeks, would not need to submit a new claim for CTR if they subsequently re-qualified. He stated this would neither increase nor decrease the level of CTR for customers but would make life easier for customers. 

Currently, if a UC customer has a deduction from their UC income as a consequence of repaying a loan to the Department of Work and Pensions, the net UC income was taken into account when assessing entitlement to CTR. This was at variance with other Benefit Income where regulations require the gross income to be used. The proposal was to amend the scheme to equalise the treatment of UC customers by taking their gross award. He stated that this would not be beneficial to these UC customers who are repaying a loan as they would get less CTR but would be fair.

Councillor Hilton explained that the current system limited the time that working age customers may be able to have their new claim backdated to one month but they need to have proven good cause for failing to have applied earlier. It was proposed to extend that current one-month period to three months where the customer has proven good cause for failing to apply at an earlier date. This brought working age customers in line with pensioners who receive CTR. He stated that this would be beneficial to customers.

The final proposal was to ensure the scheme aligned to changes introduced to the national Housing Benefit scheme, where the rules were set by the Department of Work and Pensions or the Pension Age Council Tax Regulations which were amended by the Department of Levelling Up Housing and Communities. He stated that this would be largely beneficial to all customers and was what the Council had done since the scheme was introduced.

Councillor Hilton emphasised that the Council was not proposing to change the level of reduction which remained at 8%.

Councillor Hilton reported that the agenda report explained the extensive public consultation exercise which had been undertaken from 2 September to 2 December 2022. He stated that in total 499 responses had been received. There was strong support for the changes which varied between 77% and 86% of respondents. He concluded that he hoped that the Council could support the recommendations.

Councillor Johnson seconded the proposals supporting Councillor Hilton’s comments.  

Councillor C Da Costa welcomed the changes and commented they would make life much easier for those families in receipt of these benefits.

On the proposition of Councillor Hilton, Cabinet Member for Asset Management & Commercialisation, Finance, & Ascot and seconded by Councillor Johnson the recommendations were put to a named vote as required by the legislation.

RESOLVED that:

i)               the report and, in particular the feedback from the consultation, be noted and

ii)             the proposed amendments to the Council Tax Reduction scheme for the financial year 2023/24 be approved.