Agenda item

A report from the Executive Director – Resources is attached.  (Key decision – reference number 5715)

TO FOLLOW

Cllr Tim Leaver (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources, seeking approval of changes to the Council Tax Support Scheme for the financial year 2024/25 and other related matters. The context to the proposed decisions was highlighted. An extensive consultation process had been run, details and results of which were set out in the report. Attention was also drawn to the Equality Impact Assessment carried out and attached to the report.

Further information was provided in respect of the recommended proposal to increase the Discretionary Hardship fund by £1m. In mid-November the Council placed a bid to the Greater London Authority (GLA) for a contribution towards the implementation of the CTS changes, given that the GLA will also receive additional income. This potential contribution was recognised in the budget report, although the level of funding was not known – a saving of £500k for income from combination of GLA and HSF was assumed. The GLA have now confirmed £550k, however, this funding is for the Council Tax Hardship Scheme, which will now be jointly funded by the GLA and the Council in this first year. The hardship scheme will remain at £1.5m.  Given the budget includes an assumption around Household Support Grant (that no longer seems to be forthcoming) and the GLA funding - the Council will work out how it can substitute savings within the overall funding envelope. This will be reported as part of budget monitoring during the year.

In response to Members’ queries, it was confirmed that around 36,000 households in the borough would be supported by the scheme.

DECISION:  The Cabinet agreed

I. To recommend to Full Council the revised Local Council Tax Support Scheme for 2024/25 at Appendix A incorporating the following changes:

i. Restricting council tax support to a maximum Band C council tax liability.

ii. Introducing a minimum non-dependant deduction for most households with other adults living in the property and increasing the current deductions by 20% as set out in the report.

iii. Standardising the minimum payment for most working age claimants at 50% (excluding war widows and single people under 25 including care leavers).

II. To recommend to Full Council to increase the Discretionary Hardship fund by £1m.

III. To recommend to Full Council the Council Tax Support Hardship Policy attached as Appendix E in the report.

IV. To recommend to Full Council that authority be delegated to the Executive Director, Resources, to make consequential changes to the Support Scheme and the Hardship Policy in order to effectively implement the decisions of the Council in respect of the Support Scheme and the Hardship Policy.

The report sets out the options considered, if any, and the reasons for the recommendations and the decision.