Agenda item

The Committee received a report in relation to the Draft Council Tax Support Scheme (CTSS) and Wider Support Framework.  The Executive Director of Finance and Resources provided information on the work undertaken by the Customer Access and Financial Support Service to date in respect of the redesign of the CTSS for implementation by 1^st April 2019.  The report also set out proposals for public consultation.

The report called for the Council to undertake a formal consultation with the major preceptors and the public on the proposed design of a revised scheme, which would take place for eight weeks from 1^stOctober, 2018. The results of the consultation would be presented to the Overview and Scrutiny Committee and Executive Committee in January 2019, with any recommendationsgoing forward to full Council in February, 2019.

The following key issues were highlighted:

·         The CTSS had replaced Council Tax Benefit from 1^st April, 2013.

·         Council had previously agreed a minimum council tax contribution for working age claimants of 20% and 100% for pensioners.

·         There were significant changes to the Universal Credit scheme.   On average 40% of Universal Credit claimants had between eight and twelve changes in entitlement per annum.

·         Since the introduction of Universal Credit a number of challenges had been identified to the administration of the CTS and also the collection of Council Tax generally.

It was proposed that the current means tested scheme should be replaced by a simple income band model. The indicative example of potential Grid Model Approach was provided in the report.

The Executive Director of Finance and Resources informed Members that the Executive Committee would be asked to approve consultation in relation to the draft scheme.  This would involve consultation with a number of agencies, including; West Mercia Police, Herefordshire and Worcestershire Fire and Rescue Service, members of the public and other stakeholders.

It was further reported that a new provision would be included in order to support care leavers who would be provided with 100% Council Tax support up to the age of 21. Additional support would be provided for care leavers aged 21 and up to 25, with support tapering down to the 80% by the age of 25.  

Members were advised that if the new proposals for the scheme were not approved then the current scheme would remain in place.  Any liable person affected by the proposals would be supported through transitional arrangements funded from the Hardship Fund.

In response to a Member question, the Executive Director of Finance and Resources stated that generally the claimant’s benefits would not be suspended unless they failed to provide all the information required.  The claimant would be advised prior to any action being taken.

The Portfolio Holder for Corporate Management, Councillor Tom Baker-Price, informed the Committee that the current scheme had been challenging and had caused confusion for the claimants, where their benefits had sometimes been changed between eight and twelve times in one year.  The scheme would be clear and simple to understand going forward.

In response to a Member question, the Executive Director of Finance and Resources informed the Committee that there was £25k available in the Hardship Fund and that the Council had underspent in the last financial year.  It was further stated that the Hardship Fund was a statutory requirement.

Members felt that the revised scheme was prudent in order for any issues to be mitigated.  Furthermore, the Committee supported the revised scheme and proposed that the Executive Committee approve the consultation.

RECOMMENDED that

the Council undertake a formal consultation with the major preceptors and the public on the proposed design of a revised scheme to take place for 8 weeks from 1^st October.  The results of the consultation will be presented to Overview and Scrutiny and Executive in January when it will consider any recommendations that will go to full Council in February.