Issue - meetings

The Director for Finance, Risk and Performance submitted a report that updated members on the work undertaken so far in respect of the Council Tax Support Scheme, and in respect of consultation with both the public and the Major Precepting Authorities in respect of proposed changes to the Council’s Council Tax Support Scheme with effect from 1 April 2026.

The Director of Finance, Risk and Performance said that the current scheme commenced in 2013, when it moved from a government scheme to a local scheme. He said that at that time, central government passported 90% of the cost in the form of funding to the council to administer the new council tax support scheme.

Members were reminded that the scheme had to be approved by the Council each year as part of the budget process. The Director of Finance, Risk and Performance said the scheme had not changed much since it was introduced in 2013, and pensioners could get up to 100% support, and working aged people could get up to 91.5% support.

The Director of Finance, Risk and Performance said that new scheme for 2026/27 would involve a move to a banded scheme. He said that the main benefit of the banded scheme for an individual was that their income could fluctuate up and down within the band without a reassessment.

Members were advised that this process would mean that the council would not have to carry out regular reassessment activity and gave assurance to individuals in avoiding weekly or monthly reassessments. The Director of Finance, Risk and Performance said that the scheme that would be brought forward later in the year for approval would aim to be a cost neutral scheme and there would be public consultation later this year once this process was completed.

The Director of Finance, Risk and Performance said that the scheme was still being finalised and might fluctuate slightly, and one of the recommendations that went to Executive on 3 June 2025 had changed to reflect that. Members were advised that the final proposed scheme would be signed off by the Director of Finance, Risk and Performance and the Executive Member for Financial Sustainability for consultation.

The Director of Finance, Risk and Performance said that the matter would come back to Full Council for final approval around November 2025, with a proposal for a new council tax support scheme for 2026/27 following consultation.

Councillor Nicholls said that there was only one option for changing the system and she asked if this was based upon examples from councils that had already adopted a similar scheme and had this been a success and had there been any issues encountered.

The Shared Service Manager (Benefits) said that he had been extensively in contact with the other Hertfordshire Benefits Teams in respect of council tax support and the scheme had been very successful. He said the current scheme needed to be simplified and a lot of the working age recipients of council tax received universal credit and  ...  view the full minutes text for item 78

Agree that the Council will consult with the public and Major Precepting Authorities on the introduction of a new income banded/grid scheme for working age applicants with effect from 1 April 2026 with the final scheme to be consulted on delegated to the Executive Member for Financial Sustainability in conjunction with the Section 151 officer for agreement.

The Executive Member for Financial Sustainability presented the report which provided an update on the work done so far on the Council Tax Reduction Scheme 2026/27. He said the recommendation was seeking permission to consult with the public and other major precepting authorities as the scheme needed to be updated to take account of the rollout of Universal Credit.

The Executive Member for Financial Sustainability said that the current scheme placed a high administrative burden on the council and the proposed banded scheme would reduce the number of changes that needed to be processed. He said that the scheme was a work in [PM1] progress and the final Council Tax Support scheme would be agreed by Council at the end of the year.

The Executive Member for Financial Sustainability said he was amending the recommendation in the report to ‘Agree that the Council will consult with the public and Major Precepting Authorities on the introduction of a new income banded/grid scheme for working age applicants with effect from 1 April 2026, with the final scheme to be consulted on delegated to the Executive Member for Financial Sustainability in conjunction with the Section 151 officer for agreement’.

Councillor Brittain proposed that the recommendations in the report, as amended, be supported. Councillor Wilson seconded the proposal.

Councillor E Buckmaster said he understood why the scheme was being updated but questioned whether this would be easily understood by residents. He asked if there was a way of making sure people understood the implications of the changes.

Councillor Brittain said that it could be difficult for residents to work out what they would be entitled to under the scheme. He said he would take the point away and try to find a way of making it simpler.

The Director for Finance, Risk and Performance said that the scheme was complicated at the moment. He said that the banded scheme would mean that residents did not have to go through so many reassessments if their income changed on a weekly basis.

Councillor Glover-Ward said that she was quite shocked to see that 40% of residents were going through a monthly re-evaluation. She said that the banded scheme should have a significant reduction on the number of re-evaluations.

Councillor Estop asked what was meant in the report that this would improve the level of council tax collection.

Councillor Brittain said that the lowest collection rate was from those who received council tax support. He said that there was an opportunity to create a 100% rebate and take people of most need out of council tax rates altogether which would have a better impact on increasing collection rates.

Councillor Crystall asked if the consultation would be sent to organisations like the Citizens Advice Bureau or food banks, as these often dealt with people most in need.

The Director for Finance, Risk and Performance said that the paper was going to the Overview and Scrutiny Committee next week and the Benefits Manager would be in attendance to  ...  view the full minutes text for item 52