Agenda item

The Executive Councillor for Customer Services, Councillor S Ferguson to present a new income-banded Council Tax Support Scheme for approval.

(The proposed Scheme has been considered by the Overview and Scrutiny Panel and the Cabinet at their meetings in November 2023).

With the assistance of a report by the Revenues and Benefits Manager (a copy of which is appended in the Minute Book), the Executive Councillor for Customer Services, Councillor S Ferguson outlined a proposal to introduce a new income-banded Council Tax Support Scheme for working age applications.

By way of introduction, Councillor Ferguson explained that:

v  Council Tax Benefit is a means tested benefit which reduces the amount of Council Tax payable by residents on the very lowest incomes.

v  Although Pensioners on low incomes could currently receive a 100% discount in their Council Tax payments, the current scheme for working aged people in Huntingdonshire was less generous and had not been updated in over 10 years.

v  With the benefit of a detailed example, Council was informed that Huntingdonshire currently had the least generous approach to Council Tax Support across the County, with working aged people on the same levels of benefits entitled to different levels of discounts depending upon the District in which they live.

v  Any fluctuations in income, currently trigger a change in the Council Tax support which is offered which reduces the ability of Huntingdonshire recipients to budget and financially plan and leads to the District Council Benefits team processing over 32,000 changes in Council Tax support per year.

v  The proposal being presented was to adopt a new banding approach to Council Tax Support which would allow the most economically disadvantaged residents to receive up to a 100% reduction in their Council Tax Bill and would provide for more financial security by offering a fixed amount of support.

v  It was estimated that 96% of current recipients would receive either the same or additional support and it was intended to provide an additional hardship fund to mitigate the impact in the first year for those who were expected to receive a reduced level of assistance.

v  46% of all Families on Universal Credit are in Poverty and for these people, a change in Council Tax Support will make a huge difference.

v  The cost to the Council would be the lost collection of Council Tax in the region of £1M - £70,000 to the District Council and £700,000 to the County Council. However, given the difficulties in collecting these monies, this could be seen as an investment in keeping people out of crisis, which is an order of magnitude less expensive than a rescue from crisis.

In responding to a question from Councillor K Gulson, the Assistant Deputy Leader explained that the Administration would be implementing the proposal regardless of the introduction of the Green Bin subscription charge to fulfil the Corporate Aim of helping people in crisis. The Executive Councillor for Customer Services also explained that that eligible recipients would benefit to a greater extent financially from the scheme than they would from having to pay for a green bin.

Councillor N J Hunt outlined his support for the proposals which would make a life changing difference to vulnerable residents in his ward and across Huntingdonshire District and urged other Members to offer their support. In doing so, he also drew attention to the 75% approval rate within the public consultation and urged all Members to offer their support.

In response to an enquiry from Councillor S Cawley as to whether any response had been received from Cambridgeshire County Council regarding the impact on the Council Tax collection rates, the Executive Councillor explained that although they had not responded during the consultation, subsequent correspondence has indicated that whilst not happy to be losing funding it did meet with their corporate objectives, so they had not raised any objections. In addition, a precedent had already been set in Cambridge City and South Cambridgeshire.

With reference to the discussions which had taken place at Overview and Scrutiny (Environment, Communities and Partnerships), Councillor Cawley also sought clarification on the impact on Parish Councils. In response to which, the Executive Councillor for Customer Services explained that the Council Tax Base for Huntingdonshire was currently 65,795 Band D Households. The Council Tax Support Scheme being suggested would result in a reduction of 470 Band D equivalent properties, which would be 0.7% in percentage terms. On which basis the impact will be incalculable. The Deputy Executive Leader, Councillor T D Sanderson took the opportunity to remind Members that all Town, Parishes and Precepting Authorities were consulted on the proposals and the draft scheme.

Councillor D Mickelburgh also outlined her support for the proposals, given the ongoing difficulties being experienced due to the cost-of-living crisis. She also referred to a recent survey by the Mental Health Foundation in which 61% of adults had expressed concern about paying their household bills.

In response to a question from Councillor S A Howell as to whether the proposals would be available in addition to other available discounts, i.e. Single Persons Discount, the Executive Councillor undertook to liaise with the Revenues and Benefits Team and report back to her directly.

Although not raising any objections to the proposals, Councillor J A Gray outlined his objection to the process given that he did not recall its inclusion within the budget at the beginning of the year. Clarification was sought and provided from the Chief Executive who explained that in terms of implementation it was a matter for next year’s budget, hence the decision would fall into the budget preparations for 2024/25.

Councillor Gray went on to some express reservations regarding the explanation provided by the Executive Councillor with regards to levying parish and town precepts arising from the implementation of these proposals. He also suggested that a number of Town and Parish Councils were unclear with regards to the operation of the scheme.

The Executive Councillor for Community and Health, Councillor B Pitt welcomed the widespread support for the Policy which had been demonstrated across the Council Chamber. He reiterated that in his own Portfolio, work was ongoing to offer support to those most in need and these objectives would be embedded into the new Corporate Plan as it emerged.

In drawing the debate to a close, the Executive Councillor for Customer Services paid tribute by name to the individuals who had been involved within the project, one which he thought at the start had been near impossible in the time available and in advance of the 2024/25 Budget.

Councillor Wakeford also expressed his own pride that the Council was seeking to change the existing cap for working age claimants.  The Cross-Party support for doing so reflected positively upon the Council and would have a significant impact on those who it effects.

Whereupon it was moved by Councillor S Ferguson, duly seconded by Councillor S Wakeford and

RESOLVED

that the introduction of a new income-banded Council Tax Support Scheme for working age applications be approved with effect from 1st April 2024.