Agenda item

The Director of Finance and Support Services submitted a report regarding arrangements which would enable the Council to implement a local Council Tax Support scheme (CTS) from April 2015. The report also detailed the financial and equality impacts of the recommended CTS scheme for East Herts’ residents.

The Director of Finance and Support Services stated that there were no proposed changes to the scheme from last year and that the Council was supporting the same number of people.  She reminded Members of the requirements of the CTS and confirmed that pensioners were protected.  The Director of Finance and Support Services stated that it was a complex scheme to calculate, there were no “de minimus” arrangements in place and that any kind of change reported by a beneficiary, needed a complete recalculation of entitlement.  This made CTS an onerous and resource intensive scheme to administer.  She explained that next year, an Officer would be tasked with undertaking a modelling exercise of the scheme to consider alternative schemes.

Councillor J Wyllie asked whether those in the Armed Forces, suffering from combat stress were provided with help.  He also raised the issue of same sex marriages and whether there should be specific mention of the new legal status in the scheme.  The Director of Finance and Support Services undertook to clarify the position of the Armed Covenant and provide and a written response on both issues.

Councillor T Page sought clarification of the impact of pensioners’ claims on the scheme.  The Director of Finance and Support Services explained that pensioners were excluded from the scheme so were not included in any calculation.

In response to a query from Councillor M Pope regarding resource demands, the Director of Finance and Support Service provided a summary of the peaks and troughs of the work, how staff in revenues and benefits coped, the additional resources now in place to employ more staff and how the Council was supporting the CAB in providing debt advice to help break the cycle of debt.

Councillor J Wing sought clarification on the percentage of Council Tax accounted for by the CTS.  The Director of Finance and Support Services explained that as of 1 November 2014, collectible Council Tax was £89.5 million and Council Tax Support awarded was £6.087 million.  This was across all bodies on whose behalf the Council collected Council Tax.

Councillor J Wing expressed concern about those people who might be disabled and therefore, unable to increase their income.  He referred to the absence of information on approaches taken by other Districts to mitigate the impact of the introduction of the scheme.  The Director of Finance and Support Services assured the Member that the Council did take on board what measures were being used by other Councils.  She added that the scheme proposed by East Herts had the least impact possible on Council Tax payers.

The Chairman suggested that Officers should bring a report to an earlier meeting in the cycle next year.  This was supported.  He stated that he looked forward to seeing the results of the modelling exercise.

The Committee received the report.

RESOLVED – that the forecasted financial implications arising from the recommended scheme for the Council Tax reduction scheme (CTS) with effect from 1 April 2015 and the risks and assumptions attached to these be received and supported;

(B)   the results of the future “modelling” exercise on CTS be presented for Members consideration as soon as possible; and

(C)   future reports on the Council Tax Reduction Scheme be presented to Corporate Business Scrutiny Committee earlier in the programmed cycle of meetings.