Purpose

To present the final proposals
for changes to the local Council Tax Support (CTS) Scheme,
effective from 1 April 2025.

Content

In considering the report
Cabinet noted the following comments made by Councillor
Lorber (who had requested to speak on the item).
 
Councillor Lorber began his
remarks by highlighting the significant impact he felt the proposed
changes to the Council Tax Support Scheme would have on local
residents already struggling as a result of the cost-of-living
crisis. In considering mitigations to the impact of the proposed
changes, he suggested that the Universal Credit system should not
be used as the basis of the backdating rules for new CTS claims as
the system was not felt to work effectively.  In considering the report, Councillor Lorber felt
that there had not been enough time to make residents aware of the
changes to allow them to make any necessary adjustments, with
concerns expressed about the extent and meaningfulness of the
consultation process given the preferred option which had been
identified as the basis of that process following the initial
modelling undertaken.  In highlighting
the response provided as part of the consultation by Brent Citizens
Advice, Councillor Lorber concluded by urging Cabinet to consider
as minimum increasing the level of the financial hardship Support
Fund for residents from £1.5m to £3m.
 
Having noted the
representations received, Cabinet RESOLVED to approve and
recommend the following changes to the Council Support Scheme for
consideration any approval by Full Council on 27 February 2025:
 
(1)       
That the revised Local Council Tax Support (CTS) Scheme for 2025-26
incorporate the following changes: introduce a standard 35% minimum
payment for working age households and apply a percentage reduction
to each of the income bands. This means all CTS claimants would be
expected to contribute a minimum of 35% towards their Council Tax
liability. Their CTS would then be calculated based on their income
and that would determine which income band they feel into. This
would reduce the cost of the scheme by £7.6m with detailed
explanations and calculations, number of residents impacted and the
proposed weekly reduction in CTS outlined in Appendix A of the report.
 
(2)       
Simplification of the non-dependant charges
incorporating two flat rate non-dependant deductions for most
households with other adults living in the property, £8 per
week for non-dependants “out of work” and £20 per
week for non-dependants “in work”. This would remove
the need to verify income for non-dependants for CTS claims and
reduce the administrative burden. Adopting this proposal would
reduce the cost of the scheme by £0.7m with detailed
explanation and calculations of the proposed non-dependant
deduction, number of households affected and proposed weekly
reduction in CTS support outlined within Appendix B
of the report.
 
Technical and administrative
changes
 

(3)       
To note that the amendments to CTS scheme would
include the Universal Credit notification received from DWP for
Council tax, as start date of claim for Council tax reduction if
there was entitlement to it.
 

(4)       
To note the alignment of the backdating rules for new CTS claim
with the Housing Benefits and Universal Credit regulations i.e. for
a maximum of one calendar month. The backdating request is made at
the time of submission of a new claim. This change would reduce the
administrative burden, and customers would not lose out as the
start date would be accepted as per DWP notification date to start
date of entitlement. In exceptional circumstances, the Council
would consider revising the claim for more than a month e.g.
bereavement of close relative.
 

(5)       
To note that the income bands for households was reviewed every
year in line with the Consumer Pricing Index (CPI) from September
of previous year to be considered for the new financial year.
 
(6)       
To note that a review and update of section 13A policy for hardship
fund for Council tax, including an additional £1.5m fund to
support residents, would be considered at the March 2025 Cabinet
meeting.
 
Eligible for call-in: No (report
and recommendations referred to Council)