Agenda item

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 answer detailed questions. He said that the consultation would be open to everyone to get the views of as many people as possible.

The motion to support the amended recommendation, having been proposed and seconded, was put to the meeting and upon a vote being taken, was declared CARRIED.

RESOLVED - 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.