Agenda item

The Executive Member for Finance submitted a report inviting comments on the responses received to the draft local Council Tax Support Scheme which would replace the Council Tax Benefit arrangements.  The new scheme would be effective from 1 April 2013.  The Director of Finance and Support Services provided a summary of how the scheme would work, the full detail of which was set out in a report to the last meeting of this committee and summarised here in the supporting Essential Reference Papers.  The Director of Finance and Support Services advised Members that all comments would be referred to the Executive for consideration with a final decision on the scheme being taken by Council.

As a result of the consultation exercise only 94 responses had been received to the proposed scheme.  These comments were set out within Essential Reference Paper “B” of the report now submitted. 

The Director of Finance and Support Services advised Members that the Department for Communities and Local Government (DCLG) was proposing to make a £100m grant available to be shared out between Councils for one year to those authorities who produced a “well-designed” Council Tax Support Scheme.  This grant would be payable in March 2013 to those Councils whose schemes met the Government’s criteria, which was set out in the report now submitted.  The Director of Finance and Support Services advised Members that the “agreed scheme” had to be in place by 31 January 2013.

Councillor T Page stated that the Government Grant complicated the picture and would have preferred to see a range of alternative options prepared for the Executive to consider which included one taking the grant into account but maintaining the authority’s original spending commitment.  The Chief Executive and Director of Customer and Community Services explained the current benefit process and outlined how the new scheme would work.  He explained that pensioners on benefit would continue to receive a 100% discount and that other individuals would get a 90% discount, i.e. everyone would pay a least 10% Council Tax unless they were ‘protected’ pensioners.  He explained that the Council had a separate scheme to protect extreme hardship cases and that each situation would be reviewed on its individual merits.

Councillor G Jones sought clarification on the potential for other options.  The Director of Finance and Support Services reminded Members that the Government grant was only available for one year and of the impact this had on pensioners.  She explained that the government grant would help protect the vulnerable.

Councillor J Ranger referred to the very small number of people who had responded to the consultation exercise.  He reminded Members that a new scheme would come into operation the following year and of the need not to make things too complicated.  He supported the suggestion of limiting council tax liability to 8.5% for everyone in recognition that, if there were hardship cases, then these could be looked at individually.  Councillor J Ranger reminded Members that ‘protected’ pensioners would receive 100% discount.

Councillor J Wing queried the level of income an individual might earn before the Council would pay more than the minimum amount.  The Head of Revenues and Benefits Shared Service explained that it was not possible to provide a definitive response, as much depended on the individual’s circumstances.  Councillor J Wing queried what levels of income were needed in order to generate maximum discount.  The Head of Revenues and Benefits Shared Service agreed to write to the Member separately. 

In response to a further query, the Head of Revenues and Benefits Shared Services explained that the Council paid out £7Million in Council Tax Benefits which was 100% subsidised from the Government.

Councillor G Jones queried the use of virements to maintain the status quo.  The Chief Executive and Director of Customer and Community Services explained that the use of a virement was not possible but that the Council could decide to absorb all the loses via the budget.  He explained that any decision the Council made would impact on the amounts payable to the County Council and the Police.  The Director of Finance and Support Services explained the grant implications of such a decision. 

Councillor T Page expressed concern regarding vulnerable residents.  The Chairman reminded Members that the Council was working with partners on the detail of the scheme.  The Chief Executive and Director of Customer and Community Services provided a summary of the wide range of benefit changes to be implemented by the Government on those who may be the least able to cope.

Councillor T Page queried whether the Council could levy from residents, a Council Tax insurance.  The Chief Executive and Director of Customer and Community Services advised that he did not know whether this was possible or legal and reminded Members about the timeframes which the Council needed to adhere to in order to receive the grant.

Councillor G Jones suggested that the Council needed to have in place an option which would cost the same amount which was consulted upon i.e. a range between 92% and 93.5% subsidy.  He suggested that the Executive should be given a range of options from which to choose - with and without the new government grant, and with and without using the full amount cited in the consultation documents.

The Chairman summarised Members’ views in that the Committee accepted the 8.5% figure as a concept and urged Officers to provide the Executive with more illustrations for their consideration and in order to maximise any grant subsidy.

RESOLVED – that the Executive be advised of Members’ comments as now detailed.