Agenda item

This report informs Members on the results of the public consultation concerning the proposed changes to the Council Tax Reduction Scheme for 2022-2023.

The Committee’s comments are sought before Cabinet is asked to recommend to Council a council tax reduction scheme for 2022-2023.

Appendices 1,3 and 5 will follow on a supplementary agenda.

Discussion:

The Committee considered a report informing Members on the results of the public consultation concerning the proposed changes to the Council Tax Reduction Scheme for 2022-2023. The Committee’s comments were sought before Cabinet was asked to recommend to Council a Council Tax Reduction Scheme for 2022-2023.

The Head of Revenues and Benefits reported that there had been 819 responses to the consultation and, although 38.3% initially supported the retention of the current council tax scheme, once respondents had considered the income-grid scheme that was being proposed, 67% agreed with its introduction. The majority were in favour of each of the 12 proposed changes to the scheme.

Members raised the following questions and comments:

·       Personal Independence Payments (PIP): Clarification was sought on whether people applying for a PIP, who may have to wait up to two years for a decision, were excluded from the new scheme. The Head of Revenues and Benefits advised that PIP was not means tested whereas the new scheme was income based. If there was a delay in a PIP application, it would not prevent people from applying for universal credit. One of the benefits of the new scheme was that people would not have to make separate applications for universal credit and council tax reduction so it would avoid them missing out on a benefit they were entitled to.

Asked how an applicant for PIP was made aware that they should be applying for universal credit, the Head of Revenues and Benefits said that his teams worked closely with the DWP to sign post people to the benefits they were entitled to.  

It was requested that a Member briefing be arranged so that Members were better placed to assist their residents. This should include some worked examples to demonstrate the financial impact for individuals.

·       Maximum discount of 65%: It was suggested that the consultation should have asked residents views on this maximum as it had previously been 100%. Although the proposed scheme was better than the current one, it was still pernicious for many residents. The Head of Revenues and Benefits referred to a proposed £200,000 hardship fund to assist in cases where residents have been adversely affected.

·       Council Tax Discretionary Relief Scheme: Reference was made to the minimal amounts paid under this scheme and a briefing note was requested on its criteria; what payments have been made; and in what circumstances. The Head of Revenues and Benefits acknowledged that historically, this fund had not been spent. There had been an increase in applications for assistance under the scheme over the past two years and these were considered on the basis of whether Council Tax specifically was causing the financial hardship.

The Head of Revenues and Benefits said that the new scheme would enable the Council to be more proactive and encourage applications by targeting specific cases using the financial modelling that had been developed.

Decision:

a)   The Committee commented on the Council Tax Reduction Scheme 2022/23 (Appendix 5) for Cabinet’s consideration on 8 February 2022 when it will be asked to recommend the scheme to Council for adoption on 24 February 2022 based on the twelve proposed changes to the existing scheme.

b)   The Committee commented on the proposal to cease the risk-based verification policy from 1 April 2022 (paragraphs 1.5 and 2.1.8) which will be for Cabinet’s consideration on 8 February 2022.

c)   Members requested that a briefing note and presentation be provided to assist their understanding of the new Council Tax Reduction scheme, including Council Tax Discretionary Relief.