The Head of Finance and ICT submitted a report to implement the 2016-17 Council Tax Reduction Scheme (CTR), the requirement to adopt a CTR scheme by 31 January 2016, together with the funding implications. 

He reported that the CTR provides assistance for those on low incomes who have a liability to pay Council Tax.  He stated that the Welfare Reform Bill detailed the intention to localise the allocation and administration of Council Tax Benefit (CTB) from 2013-14.  The UK Government devolved to the Welsh Government the establishment of localised schemes in Wales and stated its intention to reduce expenditure on CTB by the equivalent of 10%.  As a result, the Welsh Government decided to develop a single nationally defined scheme, set out in the regulations, for the provision of Council Tax Support in Wales, which would also provide for a small number of discretionary elements individual Councils could choose to adopt, with any additional associated costs funded locally.

The Head of Finance and ICT reported that the Council adopted the Council Tax Reduction Scheme for 2015-16 in accordance with the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013 which would end on 31 March 2016.  He informed Council that there were currently 14,628 households in the Borough receiving CTR, 8,733 are of working age and 5,895 of pensionable age and out of 14,628 households in receipt of CTR, 11,092 are entitled to a full CTR reduction. 

The Head of Finance and Performance reported that the Council Tax Reduction Schemes (Prescribed Requirements and Default Scheme) (Wales) (Amendment) Regulations 2016 have now been laid which make amendments to:

·       Reflect the new arrangements in relation to care and support needs which have been introduced in Wales by the Social Services and Wellbeing Act 2014;

·       Take into account terminology changes used in legislation as a  consequence to the national Insurance Contributions Act 2015 and new arrangements and terminology introduced via the Pension Act 2014. 

The Head of Finance and ICT explained that within the Prescribed Requirements Regulations, there is limited discretion given to the Council to apply discretionary elements that are more generous than the national scheme.  These are:

·         The ability to increase the standard extended reduction period of four weeks given to persons after they return to work where they have previously been receiving CTR that is to end as a result of their return to work;

·         Discretion to increase the amount of War Disablement Pensions and War Widows Pensions which is to be disregarded when calculating income of the claimant; and

·         The ability to backdate the application of CTR with regard to late claims prior to the new standard period of three months before the claim.

The Head of Finance and ICT reported that the Council is obliged to adopt a scheme by the 31 January 2016 regardless of whether it chooses to apply any of the discretionary elements.  The Council can only apply discretion if it makes its own scheme under the Prescribed Requirements Regulations.

The Head of Finance and ICT informed Council that consultation on the Prescribed Requirement Regulations has taken place and as it was proposed not to change the discretionary elements, a further consultation exercise has not been completed.  The following was proposed:

·         The extended payment period is maintained at the minimum standard of four weeks;

·         War Disablement Pensions and War Widows Pensions are fully disregarded when calculating entitlement to CTR;

·         Backdating is extended beyond the minimum standard of three months to a maximum of six months.   

He advised that the estimated total cost to the Authority of these proposals is £35,500 for 2016-17 and that the Council must consider whether to replace or revise its CTR scheme and is obliged to make a scheme under the requirements of the Prescribed Requirements Regulations.            

The Head of Finance and ICT advised that Bridgend’s 2014-15 provisional settlement from the Welsh Government would include £12.695 million to fund the CTR scheme, which does not take into account any increase in Council Tax charges or variations in caseload, and is distributed on a fixed rather than a demand-led basis.  Any shortfall between the amount provided in the final settlement and the amount of CTR awarded, including any discretionary elements, would fall on the Council.  Based on the current caseload, the cost of the Scheme for 2016-17 is estimated at £13.9 million.  Additional funding of £1 million to meet the full cost of the CTR Scheme has been included in the MTFS 2014-15 to 2017-18 and would be kept under review throughout the MTFS period. 

RESOLVED:   That Council:

1.         Noted the Council Tax Reductions Schemes and Prescribed Requirements (Wales) Regulations 2013 and the 2014, 2015 and 2016 amendment regulations.

2.         Adopted the Scheme, as detailed under paragraphs 4.18 to 4.23 of the report.