Agenda item

The Executive Member for Financial Sustainability submitted a report that allowed Overview and Scrutiny Committee Members to consider the latest available information around the current local Council Tax Support (CTS) scheme at East Herts and whether any changes to the scheme should be considered for 2021/22.

The Shared Service Manager said that Members were being asked to support the approval of the Council Tax Support Scheme for 2021/22. The scheme had been operated since April 2013 and replaced Council Tax benefit under the provisions of the local government finance bill.  The scheme was required to be confirmed by  Council by the 11 March in the preceding financial year.

Members were advised that since the scheme had been introduced in 2013, various changes had been considered although the scheme had remained the same. The Shared Service Manager said that Appendix A set out the history of the scheme and she advised the Committee that modelling had proved that a banded scheme would be unviable.  She said many processes in respect of universal credit had been automated following changes in circumstances for customers on Council Tax Support.

The Shared Service Manager said that the current economic impact on residents due to Covid-19 was uncertain and due to the changes to the furlough scheme and employment uncertainty, the report recommended that the current Council Tax Reduction Scheme remain the same for the new financial year. She said that after further consideration, Officers might come back to Members next year with a possible change to the scheme. She said in conclusion that Members were invited to support the use of the current Council Tax Reduction Scheme into 2021/22.

Councillor Snowdon asked for clarity as to the changes that could be made next year. Members were advised that Officers felt that the changes that had been considered would not be beneficial and that the current scheme, which had been in place for the last 8 years, should continue.

The Shared Service Manager said that one option that had been considered was a change to a banded scheme. She advised that this scheme would have to be subject to a full public consultation and would require changes to software; there would be cost implications with no benefits to the Council.

Councillor Goldspink said that previously, the Council had been reimbursed for the cost of Council Tax Support Schemes and she wished to know if the Council received any reimbursement towards the cost of the Council Tax Reduction Scheme.

The Shared Service Manager confirmed that the Council received no direct funding for the scheme. Councillor Goldspink asked for clarity as to eligibility for universal credit as there were some many variables to be taken into account.

The Shared Service Manager said that housing benefit was included in universal credit in a majority of cases. She said it was imperative that customers tell the Department for Work and Pensions (DWP) about housing costs when claiming universal credit. She said that it was also important that claims were submitted online at the appropriate time.

Councillor Symonds asked whether the public still struggled with understanding the way the system worked in terms of Council Tax and Universal Credit. The Shared Service Manager confirmed that Officers were working with other agencies to ensure consistency of message in terms of the advice that was being given out.

Councillor Frecknall said that he agreed that it was prudent not to make any wholesale changes given the challenges everyone was facing at the current time.  He asked for and was given clarity by the Shared Services Manager on the aims of a banded scheme for Council Tax Reduction beyond 2021/22.

The Democratic Services Officer and the Shared Services Manager explained that the recommendation was for the current scheme to continue for 2021/22 and for other options to be explored for the future in 2022/23 and beyond.

Councillor Goldspink and Councillor Devonshire seconded, a motion that the Executive be advised that the Council should continue with the current Council Tax Reduction Scheme for 2021/22 and Officers investigate the possibilities for alternative schemes beyond 2021/22. After being put to the meeting and a vote taken, this motion was declared CARRIED.

RESOLVED – that the Executive be advised that the Council should continue with the current Council Tax Reduction Scheme for 2021/22 and Officers investigate the possibilities for alternative schemes beyond 2021/22.