The Chief Finance Officer presented a report which updated Members on the proposed Council Tax Reduction (CTR) Scheme for 2019/2020, starting on 1 April 2019, and advised that the existing means tested CTR scheme, which was completely reactive to any change, would not be viable once Universal Credit Full Service (UCFS) had been rolled out fully within the district. Therefore the report sought approval to consult on a new, more efficient scheme from April 2019.

Resolved:  That

a)     the work undertaken to date and the recommendation that a redesign to the current Council Tax Reduction (CTR) scheme is required to address the issues Universal Credit Full Service causes, upon which we should consult, be noted;

b)     for the 2019/20 Council Tax Reduction (CTR) scheme, starting on 1 April 2019, a consultation be launched on the potential introduction of a fundamental redesign to the current CTR scheme for working age claimants as follows -

(i)       The current means–tested scheme be replaced by a simple income grid model (Option 1);

The levels in each grid be determined based on:

·      Overall expenditure of scheme

·      Ensuring maximum number of applicants are protected; and

·      Ensuring that any losses to individual applicants are minimised;

The highest level of discount be set at the current maximum level of liability (80%) and that all applicants that are in receipt of a ‘passported benefit’ such as Income Support, Jobseeker’s Allowance (Income Based) and Employment and Support Allowance (Income Related) receive maximum discount;

The levels for all other bands be determined during the modelling process;

The scheme allow for variation in household size with the levels of income per band increasing where an applicant has a partner, and/or dependants;

(ii)     the number of children usedin the calculation of support be limited totwo for all working age applicants, bringing the scheme in line with Universal Credit (Option 2);

(iii)    Where an applicant has non-dependants living with them, no deduction be made from any entitlement. This is a significant change and means that the administration of the scheme will be more straightforward whilst also protecting low income families where adult sons and daughters, for example, remain at home; (Option 3)

(iv)    the Second Adult Rebate (Option 4) be removed;

(v)      to encourage work, the existing earnings disregards be replaced by a standard £25 per week disregard across all applicant types. This will take the place of the standard disregards and additional earnings disregards. Where a family also receives a child care disregard (for child care costs not paid for by Central Government schemes), the income levels in the ‘grid scheme’ are set at a higher rate; (Option 5)

(vi)    disability benefits such as Disability Living Allowance, Personal Independence Allowance continue to be disregarded and total disregard on war pensions and war disablement pensions continue. In addition, Carer’s Allowance (Option 6) also be disregarded, again providing additional protection with the scheme;

(vii)   Where an applicant is disabled, they have a disabled child or receive the Support Component of the Employment and Support Allowance, the amount they receive as a premium under the existing scheme be replaced by an equivalent income disregard (Option 7)

(viii) Simplifying the capital rules and reducing the capital limit from the current £16,000 to £6,000. Any capital below this level will not have any effect on the applicant’s entitlement to CTR. (Option 8);

(ix)    the conditions that prevent certain students from claiming Council Tax Reduction (Option 9) be removed;

(x)      extended payment provision (Option 10) be removed;

(xi)    the CTR claiming process for all applicants who receive Universal Credit (Option 11) be changed;

(xii)   all changes be made in circumstances which change any entitlement to Council Tax Reduction on a daily basis rather than the current (benefit based) weekly basis (Option 12);

(xiii) where a request is made to backdate entitlement, the requirement that the applicant must prove ‘good cause’ be replaced by a general discretion provision. (Option 13);

(xiv)  the scheme have a minimum award of £1.00 per week (Option 14);

c)     the Equalities Impact Assessment (EQIA) at Appendix A be noted; and

d)     the proposed arrangements for the consultation, be endorsed.