The Interim Head of Finance submitted a report, in order to provide Council with information regarding the implementation of the 2019-20 Council Tax Reduction Scheme (CTR), the requirement to adopt a CTR scheme by 31 January 2019 together with the funding implications.

The report outlined certain background information, then confirmed that the CTR Scheme in Wales is set by regulations made under Schedule 1B of the Local Government Finance Act 1992 (as inserted by the Local Government Finance Act 2012).

The Benefits and Financial Assessments Manager advised, that on 27 November 2013, the Assembly laid regulations that implemented the arrangements to support those who will pay council tax. The regulations (Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013 and Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013) prescribe the main features of the scheme to be adopted by all councils in Wales. Minor amendments to these regulations have since been made each financial year.

The Council Tax Reduction Schemes (Prescribed Requirements and Default Scheme) (Wales) (Amendment) Regulations 2019 have now been laid. These regulations uprate the financial figures used in the CTR schemes and makes amendments to:

·      Mirror changes made to the benefit system with respect to Employment Support Allowance. The 2013 Regulations will continue to make reference to the Work-Related Activity Component which will continue to be payable to some applicants.

·      Make changes to reflect new service provision arrangements following the Regulation and Inspection of Social Care (Wales) Act 2016.

·      Make changes to address an anomaly within the wording of the amending provisions included within the Council Tax Reduction Scheme (Prescribed Requirements and Default Scheme) (Wales) (Amendment) Regulations 2017 with respect to changes of circumstances provisions.

·      Make a number of changes with respect to payments which are disregarded for the purposes of calculating ‘income’ and/or ‘capital’. These include the new bereavement support payments amongst others.

The new regulations do not contain any significant changes, from the claimants’ perspectives, to the current scheme and the maximum level of support that eligible claimants can receive remains at 100%.

Paragraph 4.6 of the report stated that within the Prescribed Requirements Regulations, there was limited discretion given to the Council to apply discretionary elements that were more generous than the national scheme, and this section of the report gave examples of this.

The Benefits and Financial Assessments Manager added the relevant regulations required that the Council adopts a CTR Scheme by 31 January 2019.

Paragraph 4.14 of the report outlined certain Main Issues for consideration, confirming that the Council must consider whether to replace or revise its CTR Scheme and was obliged to make a scheme under the requirements of the above Regulations. The obligation was a statutory duty and applied even if the Council chose not to apply any of the discretions available to it.

The Benefits and Financial Assessments Manager added that the Council’s recommended approach to the available discretions, was to apply the recommendations in Table 4, paragraph 4.23 of the report.

A Member advised that the Council should lobby the Welsh Government for an increased level of financial support for the Scheme, as whilst this was sufficient in previous years, this was now not the case as there was a shortfall between the amount provided in the settlement and the amount of Council Tax Reduction awarded.

The Group Manager – Financial Planning and Budget Management confirmed that the funding from Welsh Government across Wales was actually the same as that which had been provided in previous years. The shortfall had been impacted over the years as a result of increases to Council Tax.  

RESOLVED:                            That Council:-

(1)   Noted the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013, and the 2014 to 2019 amendment regulations.

Adopted the Council Tax Reduction Scheme 2019 – 2020, as set out in paragraphs 4.18 to 4.23 of the report.