Policy and Resources |
24 November 2021 |
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Council Tax Reduction Scheme 2022-2023 |
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Final Decision-Maker |
Council |
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Lead Head of Service |
Stephen McGinnes, Director Mid Kent Services |
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Lead Officer and Report Author |
Sheila Coburn, Head of Mid Kent Revenues and Benefits |
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Classification |
Public |
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Wards affected |
All |
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Executive Summary |
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1.1 Each year Full Council has to approve the Council Tax Reduction Scheme for the following year.
1.2 Were changes to be proposed, it would be necessary for a public consultation to take place. A decision needs to allow time for this step if necessary.
1.3 This report makes a recommendation on the scheme to be implemented for 2022-23.
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Purpose of Report
To recommend no changes are made to the current Council Tax Reduction Scheme. For Council to adopt the Council Tax Reduction Scheme for 2022-23.
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This report makes the following recommendations to this Committee: |
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1. That Policy & Resources Committee notes the progress of the inaugural year of the income banded Council Tax Reduction Scheme. 2. That the Committee recommends to Council that no changes are made to the Council Tax Reduction Scheme for 2022-2023 for the reasons stated in this report.
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Timetable |
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Meeting |
Date |
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Corporate Leadership Team |
5 October 2021 |
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Policy and Resources Committee |
24 November 2021 |
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Council |
8 December 2021 |
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Council Tax Reduction Scheme 2022-2023 |
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2. CROSS-CUTTING ISSUES AND IMPLICATIONS
3. INTRODUCTION AND BACKGROUND
3.1 The Council Tax Reduction Scheme (CTRS) was introduced in April 2013 as
a replacement for Council Tax Benefit (CTB), a national scheme
administered on behalf of the Department for Works and Pensions (DWP).
3.2 Each year the scheme must be approved by Full Council.
3.3 Any changes to the scheme for any year have to go for public consultation
before being approved.
3.4 Since its introduction in April 2013, our local scheme has been ‘refreshed’
annually for general changes in applicable amounts (primarily in relation to
disability premiums) and taking into account the introduction of Universal
Credit.
3.5 Under the Council Tax Reduction provisions, the scheme for pensioners is
determined by Central Government and the scheme for working-age
applicants is determined by the Council.
3.6 Council Tax Reduction provides financial assistance in the form of a rebate
on the Council Tax bill and this generally reduced over recent years before
the COVID pandemic.
2016/2017 £10,679,971
2017/2018 £10,264,000
2018/2019 £ 9,058,176
2019/2020 £ 8,652,758
2020/2021 £ 9,499,392
2021/2022 £ 9,945,451 (estimated)
3.7 The introduction of Universal Credit Full Service (UCFS) on 21 November
2018 brought a number of challenges to both the administration of Council
Tax Reduction and also the collection of Council Tax.
3.8 The number of changes that customers have to Universal Credit meant
there were constant amendments to Council Tax liability, meaning re-
calculation of instalments, delays and the re-issuing of Council Tax bills.
3.9 From April 2021, a new income banded scheme was introduced which has
an in-built, simplified claiming process with wide income ranges.
3.10 As with the previous scheme, working-age applicants, irrespective of their
financial circumstances, are required to pay a minimum of 20% towards
their Council Tax liability.
3.11 The new banded scheme means that frequent liability changes have been
avoided, and revised bills are only being issued where income crosses into
another earnings band.
3.12 This has made it less cumbersome for customers and has allowed us to
convey a relatively simple eligibility message to residents.
3.13 Feedback from the Customer Services team and Citizens Advice has been
positive with fewer enquiries being made about eligibility and
understanding of the income banded scheme.
3.14 Table 1 shows the income banded scheme for households with no children,
1-2 children and 3 plus children:
Table 1
Band |
Household size and earnings threshold |
Maximum Award |
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No children |
1-2 children |
3+ children |
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Band 1 |
Passported/ max UC |
Passported/ max UC |
Passported/ max UC |
80% |
Band 2 |
Less than £316 |
Less than £387 |
Less than £441 |
65% |
Band 3 |
£316-£631.99 |
£387-£774.99 |
£441-£882.99 |
50% |
Band 4 |
£632-£947.99 |
£775-£1,162.99 |
£883-£1,324.99 |
25% |
Band 5 |
£948-£1,263.99 |
£1,163-£1,550.99 |
£1,325-£1,766.99 |
10% |
3.15 Passported in the table refers to legacy benefits (job seekers allowance,
Income support, employment support allowance) for customers who have
not migrated to Universal Credit.
4. AVAILABLE OPTIONS
4.1 Option 1 – maintain current scheme. The new income banded scheme has
so far been successful but is still in its first year. To consider introducing
any amendments to the scheme whilst not having completed a full year
would not be advisable.
4.2 Option 2 – revise the current scheme. Any revisions to the scheme would
at this stage be limited, difficult to identify and implement at this early
stage of not having completed a full year of the new income banded
scheme.
5. PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS
5.1 Option 1 – This is the first year of the income banded scheme and it may
be advisable for a full year to be completed before considering any
changes.
6.
RISK
6.1 The risks associated with this proposal, including the risks if the Council
does not act as recommended, have been considered in line with the
Council’s Risk Management Framework. We are satisfied that the risks
associated are within the Council’s risk appetite and will be managed as per
the Policy.
7. NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE
DECISION
7.1 It is intended that a recommendation from Policy & Resources Committee
on the final scheme to be implemented will be taken to Council for decision
on 8 December 2021.
7.2 The final decision at Council will be notified to those households affected
and key stakeholders.
8. REPORT APPENDICES
None.
9 BACKGROUND PAPERS
Maidstone Council Tax Reduction Scheme 2021-22: Maidstone S13A Scheme 202122 v6.