Agenda item

Each year the Council is required to review its Council Tax Support (CTS) Scheme. This report advises Overview and Scrutiny of the progress of the 2019 annual review and the resultant proposals for consultation for changes to the CTS scheme to take effect from April 2020.

The meeting reconvened at 4.40pm

Members considered the Council Tax Support – 2020/21 scheme report, presented by Councillor Boden.

Councillor Boden offered an apology to members of the Overview & Scrutiny Panel for his absence at the previous meeting where this item was due to be considered.

Councillor Miscandlon thanked Councillor Boden for his apology.

Members asked questions, made comments and received responses as follows;

1.    Councillor Hay asked if the Council had approached Cambridgeshire County Council (CCC) again as per point 4.5 of the report (page 52 of the agenda pack). Councillor Mrs French explained that she believed CCC would not be contributing as no business case had been presented to them. She confirmed that she had raised this with the Leader of CCC and discussions were ongoing.

2.    Councillor Boden confirmed that CCC are willing to consider this, if a suitable business case is presented to them on this and other elements of the Council Tax system. However, he added that this would not happen this financial year.

3.    Councillor Cornwell agreed and asked that members support the undertaking of a detailed business case modelling of a future scheme. He explained that there would be no detrimental effect to residents this financial year and a business case detailing improvements that could be made to the Council Tax System, will be considered the following year.

4.    Councillor Boden asked members of the Overview & Scrutiny Panel to support the recommendation to introduce a fluctuating earnings rule to the treatment of Universal Credit (UC) as variable incomes can cause unfortunate consequences to those affected individuals as they receive repetitive and revised estimates and demands.

5.    Councillor Wicks asked if claimants ‘pay rotas’ will be considered. Councillor Boden confirmed that this is covered by legislation. He stated that whilst legally there are provisions, putting them into practice can be difficult. He explained that the Department for Work and Pensions (DWP) are currently trialling the practical application of moving existing claimants on to UC and are looking to move all existing claimants on to UC by 2024.

6.    Councillor Hay raised concern from an equalities perspective about the treatment of a new UC claimant and an existing claimant with a change in circumstances, as different assessments are carried out and could result in different claim amount. Councillor Boden assured members that this cannot be challenged from an equality perspective as the administration of UC is being carried out as per legislation.

7.    Councillor Mason asked if consideration should be given to a tolerance level of £20 following the rise of the National Wage. Councillor Boden explained that it is a balancing act between incentivising people and unreasonable variations. Peter Catchpole explained that this has been considered and both ARP and other Local Authorities have decided that £15 is an appropriate tolerance level of fluctuation in earnings.

8.    Mark Saunders confirmed that a tolerance of £15 will be cost neutral to the Council. If the tolerance limit is increased further, the cost to the Council will increase too. He reiterated that the tolerance level is purely for administrative purposes and is not a cost saving or benefit to the Council.

9.    Councillor Hay thanked officers for their explanation.

10.Councillor Cornwell requested that Credit Unions are included in the consultation process.

11.Councillor Cornwell asked that members are made aware if feedback received as part of the consultation process, is submitted by claimants of Council Tax Support or just interested parties.

The Overview and Scrutiny Panel AGREED to;

1.    Recommend to Cabinet the implementation of a fluctuating earnings rule of £15 per week. The £15 per week level is to be reassessed to ensure the anticipated administration gains remain relevant depending on the income level.

2.    Undertake a detailed modelling of a future Council tax Support Scheme during 2020 to be implemented in 2021/22.

3.    Continue with the current 14% Council Tax Support Scheme for 2020/21.

(Councillor Boden declared an interest by virtue of the fact that he is the Chairman of LGSS, which could be considered a competitor of Anglia Revenues Partnership)