Issue - meetings

The Financial Support Manager presented the draft Council Tax Support Scheme for Members’ consideration.

During the presentation of the report the following matters were highlighted:

·                The Council had the ability to review and change the Council Tax Support Scheme every year. 

·                Any proposed changes had to be subject to consultation with both the precepting authorities and anybody else who might be impacted by the scheme.

·                The existing scheme was based on Council Tax data, was quite reactive and required the majority of residents to pay at least 20 per cent of their Council Tax.

·                The proposed new scheme would take into account the changing circumstances of a resident and people could claim up to 100 per cent Council Tax relief.

·                The potential for residents to claim Council Tax support of up to 100 per cent would enable a number of residents to be eligible for the support that was currently only available to care leavers.

·                Under the proposed scheme once a person started to claim Universal Credit the Council would be notified and adjustments could be made to the amount of Council Tax that they were charged.

·                The proposed new scheme would not take housing benefit into account when calculating the income that residents received.

·                The draft new scheme would also provide clearer guidelines to residents about the Council Tax Support Scheme which would make it easier to understand how the scheme worked and how it applied to individuals.

·                The proposed scheme, if approved, would result in an increase of £50,000 in costs.  These costs would be shared between all the precepting authorities and Redditch Borough Council would only need to cover 13 per cent of those costs.

·                The changes were being proposed in a context in which approximately £400,000 in Council Tax had not been paid by residents, including those residents who struggled to pay the 20 per cent of Council Tax currently required from those in receipt of support.

·                As the proposals were subject to consultation there was the possibility that changes would be made prior to a decision being taken on the future scheme.  Any changes as well as the final scheme would be reported for the consideration of the Executive Committee in due course.

RESOLVED that

the Council should consult with the public and major precepting authorities on the introduction of a new income banded Council Tax Support Scheme for working age applicants to be implemented from 1^st April 2021.