Agenda item

Council Tax Reduction Scheme

To provide Cabinet with information regarding the implementation of the 2017-18 Council Tax Reduction Scheme (CTR), the requirement to adopt a CTR scheme by 31 January 2017, together with the funding implications.

 

Minutes:

The Head of Finance and S151 Officer presented a report, the purpose of which, was to provide Cabinet with information regarding the implementation of the 2017-18 Council Tax Reduction Scheme (CTR) (to be adopted by 31 January 2017), together with the funding implications.

 

He confirmed that on 20 January 2016, the Council adopted the CTR for 2016-17 in accordance with the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013, with this scheme ending on 31 March 2017.

 

The Council Tax Reduction Schemes (Prescribed Requirements and Default Scheme) (Wales) (Amendment) Regulations 2017 have now been laid. These regulations update the financial figures used in the CTR schemes and makes amendments to:

 

·         Explain how a local authority should calculate an applicant’s weekly income (i.e. to consider income that the person expects to receive as well as income that has been received). 

·         Ensure consistency with other inter-related social security legislation by taking tax reliefs into account when determining net earnings, and with regards the treatment of the Universal Credit carer’s element in determining the applicable amount.

·         Correct inconsistencies between the Welsh and English language versions of the 2016 Regulations.

 

The new regulations do not contain any significant changes from the claimants’ perspective to the current scheme, and the maximum level of support that eligible claimants can receive remains at 100%. The regulations can be found at: http://www.assembly.wales/laid%20documents/sub-ld10857/sub-ld10857-e.pdf

 

Paragraph 4.6 of the report, then advised of the limited discretion given to the Council, to apply discretionary elements that are more generous than the national scheme. These discretionary elements were contained in this section of the report.

 

The Authority had to adopt a CTR Scheme by 31 January 2017 under the above legislation.

 

A consultation had taken place recently advised the Head of Finance and S151 Officer on the three discretionary elements of the scheme, to which a total of 681 responses were received, with the minority of respondents (16.6%) indicating that they were currently in the receipt of CTR.

 

The total estimated cost to the Council for the most supported discretionary options as highlighted in the report for 2017-8 was £22k, and it was therefore proposed, that the discretionary elements be as follows:-

 

·         The extended payment period is maintained at the minimum standard of 4 weeks.

 

·         War Disablement Pensions and War Widows Pensions are fully disregarded when calculating entitlement to CTR. The estimated cost of this proposal is £22,000.

 

·         Backdating is reduced to the minimum standard of 3 months.

 

The Head of Finance and S151 Officer then outlined certain main issues in respect of the report’s proposals, whilst paragraphs 4.24 to 4.29 of the report, contained the finer details of the scheme.

 

The Deputy Leader confirmed he was happy with the proposals of the report, whilst the Leader stated that he was pleased the Authority were supporting war veterans and their widows/widowers, as this also meant the Council were honouring its Armed Forces Covenant.

 

RESOLVED:                          That Cabinet:

 

(a)  Noted the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013, and the 2014, 2015, 2016 and 2017 amendment regulations.

 

(b)  Noted the outcome of the consultation exercise undertaken by the Council on the discretionary elements of the Council Tax Reduction Scheme.

 

Adopted the scheme, details of which are given in paragraphs 4.24 to 4.29 of the report.

Supporting documents: