Agenda item

(Finance & Technology Portfolio Holder) To consider the attached report (C-053-2013/14).

(1)        That the responses to the consultation on the scheme for 2014/15 be noted;

(2)        That in view of the consultation responses and experience of the 2013/14 scheme so far, no changes be made to the scheme for 2014/15; and

(3)        That the proposed Local Council Tax Support Scheme for 2014/15 be recommended to the Council for approval.

The Portfolio Holder for Finance & Technology presented a report on the Local Council Tax Support Scheme for 2014/15.

The Portfolio Holder reminded the Cabinet that, as part of the major changes to the Welfare Benefits system, Council Tax Benefit had ended on 31 March 2013 and was replaced by a new scheme called Local Council Tax Support. A key principle of the scheme was the protection of people who were of an age where they could claim Pension Credit. The Government introduced Regulations to ensure that pensioners who had previously received Council Tax Benefit had continued to receive the same level of assistance they had prior to the Local Council Tax Support scheme being introduced. The Government funding to Councils for Local Council Tax Support in 2013/14 was set at 90% of what would have been available as subsidy if the Council Tax Benefit scheme had continued. Funding for 2014/15 was expected to reduce but the exact amount would not be known until later in the month.

The Portfolio Holder stated that development of the 2013/14 Local Council Tax Support scheme for Epping Forest had included consultation with the public and the major precepting authorities. It had sought to achieve cost neutrality, i.e. the cut in Government funding would be offset by making reductions in the amount of support that working age households could receive. A scheme that was not cost neutral was likely to result in cuts to services by the Council and other precepting authorities. It was too early to provide a definitive analysis of the 2013/14 scheme as the collection and recovery rates were yet to be finalised. However, indications were that the scheme would achieve the required cost neutrality and the collection rate was higher than originally anticipated.

The Portfolio Holder reported that on 22 July 2013, the Cabinet had approved the general principle that the Local Council Tax Support scheme for 2014/15 should be cost neutral for the Council and that public consultation should be undertaken on certain elements of the scheme; this was undertaken from 16 August 2013 to 30 September 2013. Following the consultation period, Officers were proposing that the Scheme should remain unchanged for 2014/15.

In response to questions form the Members present, the Portfolio Holder highlighted that approximately 4,500 people were now paying some Council Tax for the first time, whereas previously they would have been exempt. It was very disappointing to receive only 41 responses to the consultation, however this response level was in line with the experience of other Councils.

A local Member for Loughton Broadway highlighted the response (received after the consultation had closed) from Gingerbread, the charity for single parent families, that the scheme should be amended to disregard Child Maintenance. The Portfolio Holder pointed out that £15 per week of any maintenance income was disregarded anyway and that increasing the protection for one specific group of people would increase the burden on the other non-protected groups of people – some of whom had incomes as low as £71.70 per week.

Decision:

(1)        That the responses to the consultation on the scheme for 2014/15 be noted;

(2)        That in view of the consultation responses and experience of the 2013/14 scheme so far, no changes be made to the scheme for 2014/15; and

(3)        That the proposed Local Council Tax Support Scheme for 2014/15 be recommended to the Council for approval.

Reasons for Decision:

If any changes were to be made to the current scheme, then these needed approval by the Council on 17 December 2013.

Other Options Considered and Rejected:

If any amendments to the scheme were not approved by 31 January 2014 then the existing scheme would have to continue.