Decision details

1.  The Council is required to review the CTS scheme each year in accordance with schedule 1A of the Local Government Finance Act 1992 and decide to maintain or amend the scheme. Where changes to the scheme are proposed, Councils must publish a draft scheme and consult with local taxpayers and precepting authorities prior to implementation.

2.  The current CTS scheme has remained largely unchanged since its introduction in 2013, when its design was largely informed by Council Tax Benefit along with limits to the maximum amount of Council Tax liability that could be covered by the scheme. However, the introduction of Universal Credit (UC) has significantly increased the administrative burden for Councils, as the responsive nature of UC awards leads to high levels of changes to administer.

3.  Along with the Council’s commitments within the Corporate Plan to both prevent crisis and support those in crisis, and to deliver good quality, high value-for-money services, a reduction to the additional work generated by UC changes has been a key driver for a detailed review to be conducted. There has been a decline in caseload since CTS was first introduced and this has presented an opportunity to consider if support can be increased to further support low-income families through difficult economic times.

4.  Scheme design and modelling has been conducted with the support of industry experts ACS Ltd, who have worked with over 250 Local Authorities in relation to CTS and have assisted 95 LAs to successfully implement changes to their CTS schemes. Consideration has been given to national trends in CTS schemes alongside considerable analysis of our own data to develop a scheme to best support Huntingdonshire residents.

The Cabinet received and noted a report (a copy of which is appended in the Minute Book) that set out the action taken to date to redesign the Council Tax Support (CTS) scheme to ensure that it is fit for the future, provides the rationale for change and leads to a recommendation that the Council approves the introduction of a new, income-banded scheme for working age applicants with effect from 1st April 2024, increasing levels of support available to the most vulnerable residents across Huntingdonshire.  The main points of the discussions on the report may be summarised as follows:

The Cabinet:

v  Noted that since the abolition of Council Tax Benefit in 2013, Local Authorities in England have been required to administer their own Council Tax Support (CTS) schemes. As whilst support for residents of pensionable age is determined by Central Government, schemes for working age residents are set locally. Local Authorities are required to review their CTS schemes annually and to decide to either maintain their existing scheme or replace it.

v  Agreed that increasing the level of support for eligible residents directly supports the aims specified within the Corporate Plan, to keep people out of crisis and to help those in crisis.

v  Acknowledged that simplifying the scheme to make it more accessible for residents, reduce the administrative burden and improving delivery times. This will directly support the aim specified within the Corporate Plan to deliver good quality, value-for-money services with good control and compliance with statutory obligations.

v  Recognised that the reduction in caseload and therefore reduction of the impact of CTS on the taxbase provides an opportunity to consider increasing support to those most in need.

v  Noted that a review of the CTS scheme provides an opportunity to ensure the scheme best meets the needs of our residents and contributes to the Corporate Plan commitment to both prevent crisis, and to support those in crisis.

v  Noted that the recommended amendments to the scheme will also contribute to Priority 3 of the Corporate Plan – to deliver good quality, high value for money services with good control and compliance with statutory obligations.

v  Agreed with rising food and energy costs the departments and teams within the Council should collaborate closely with each other and with partner organisations to develop an integrated approach to local council tax support council tax collection, identifying and supporting people who are struggling to pay including looking at the physical and mental wellbeing for those in greatest need.

As a result of discussions on the report the Chair moved, and it was.

RESOLVED

that Council be recommended to approve the introduction of a new income-banded Council Tax Supoort scheme for working age applications with effect from 1st April 2024.

As outlined in the report.

As outlined in the report.

As outlined in the report.