Agenda item

The Executive Member for Financial Sustainability submitted a report inviting Overview and Scrutiny Committee to consider the latest information around the current Council Tax Support (CTS) scheme at East Herts and whether any changes to the scheme should be considered for 2024/25.

The Executive Member for Financial Sustainability said that it was a government requirement that this matter was given annual approval. He said that the recommendation was that the scheme remained unchanged for 2024/25. The scheme was monitored in relation to caseload numbers, changes to universal credit as well as opportunities to maximise automation and efficiencies.

The Executive Member for Financial Sustainability said that a further report would be submitted to Members early in the new fiscal year for the following years’ scheme to take account of changes and bring forward recommendations for change at that time.

Members were advised that the scheme had been the same since 2013 and there were no persuasive arguments to change the Council Tax support scheme for 2024/25 and this had the advantage of ensuring a degree of certainty for residents during a difficult financial period.

The Head of the Revenues and Benefits Shared Service confirmed to Councillor Andrews that this report had traditionally come before Overview and Scrutiny for Members’ views before being submitted to the Executive, and the Executive were due to meet on 11 July 2023. The government requirement was that this matter was then determined by Council each year.

Councillor Watson asked for some clarification regarding bad debts. He referred to the tax burden on the poorest residents. The Head of the Revenues and Benefits Shared Service said that the way the tax base was calculated in terms of where the cost of this benefit sits, was made up of many factors including the overall council tax and the various reliefs that were granted by the council.

The Head of the Revenues and Benefits Shared Service that the Council Tax support cost the council £6.6m as a part of the overall tax base of £135m. She said that Officers looked at the collectability of the debt for those people on council tax support, which equated to just over 5,000 households. She said that Officers worked with people to relieve themselves of debt and Officers also looked at the collectability of all debt.

Councillor Buckmaster said that he referred to a reference in the report that those on universal credit assumed their council tax was included and their debt was building up over time. The Head of the Revenues and Benefits Shared Service set out the ways Officers engaged with residents as early as possible. She said that a small amount of money was available for hardship relief to mitigate periods of arrears for those most in need of help. 

The Head of the Revenues and Benefits Shared Service replied to a query from Councillor Clements regarding the factors that were considered when changes were recommended to the scheme for council tax support.

Councillor Nicholls asked about rising interest rates and whether there were economically inactive residents who might struggle to pay council tax and had not been identified by Officers. The Head of the Revenues and Benefits Shared Service said that the council tax recovery team were very conscious of any engagement they had with customers who were struggling to pay council tax.

Members were advised that residents were signposted to agencies who could assist those that were struggling. The Head of the Revenues and Benefits Shared Service set out the signposting options and the holistic advice that was on offer.

Councillor Boylan proposed and Councillor Carter seconded, a motion that Overview and Scrutiny Committee Overview and Scrutiny Committee consider that there should be no change to the East Herts local Council Tax Support scheme for 2024/25.

After being put to the meeting and a vote taken, the motion was declared CARRIED.

RESOLVED – that Overview and Scrutiny Committee consider that there should be no change to the East Herts local Council Tax Support scheme for 2024/25.