Issue - meetings

Report of the Deputy Leader and Cabinet Member, Finance and Transformation is attached.

The Deputy Leader and Cabinet Member for Finance and Transformation presented a report regarding the Council’s Council Tax Support (CTS) scheme, which had been reviewed to ensure it remains fair, efficient, and sustainable. Three alternative models had been modelled to explore simplification and fairness, with option 3 recommended for approval to go out for public consultation:

•              20% minimum payment

•              Only earned income included in assessment

•              £8k capital limit

•              £40.00 flat non dependant deduction

•              Higher income ‘bands’ used for assessment

This increases average awards, benefits 88% of claimants, reduces administrative burden and only cost £65k more than the current scheme. It was noted the scheme only applied to working age residents.

Decision:

Cabinet:

1.    Approved a consultation to present options to move to a CTS scheme based on the principles of Option 3 (an earnings-only assessment, £8k capital limit, £40 flat deduction, higher income bands. Increases average awards, benefits 88 per cent of claimants, and costs only £65k more than the current scheme);

2.    Agreed that officers prepare the final scheme parameters, conduct a full EIA, and undertake statutory consultation; and

3.    Noted that adoption must be by Full Council and that equality compliance, UC alignment, and administrative readiness be confirmed before implementation in 2026/27.

Reasons for the decision:

Option 3 is identified as the most viable reform option based on analysis.

Alternative options considered and rejected:

·         Option 1: Reduced capital limit (£6k), higher B and C cap, £65 flat non-dependant deduction. Yields large savings (£6.8m) but severe losses for 99% of claimants.

·         Option 2: Retains £8k capital limit, £40 flat non dependant deduction, up to 100% support. Produces £3.4m savings but reduces generosity and removes support for many families with children.