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Summary
...to ensure the affordability of the Local Council Tax Support scheme for working-age claimants, the council agreed to reduce the maximum support level from 100% to 80%, increase the earnings taper from 15% to 25%, increase the non-dependant deduction charge from £5 to £10 per week, remove the exemption for non-dependants receiving passported benefits or not in work, abolish the second adult rebate for working-age claimants, allow DWP notifications of Universal Credit claims to serve as LCTS claims, and create a discretionary Council Tax Hardship Fund, while delegating the fund's details and implementation to the Cabinet member for Inclusive Economy, Business, Skills and Greenwich Supports.
Full council record
Content
That proposals in the report
relate to the Local Council Tax Support (LCTS) scheme for working
age claimants and that pensioner households claiming LCTS are
unaffected and continue to be able to receive up to 100% support,
subject to eligibility, be noted.
That in setting the budget for
2024/25, savings amounting to approximately 10% of the councils
overall net budget were agreed and that within this sum was
£1.1m relating to potential changes to LCTS, subject to
consultation and agreement, effective from 2025/26 onwards, be
noted.
Noted that:
Øthe direct cost of support
to pensioner and working age households is £26.2m of foregone
council tax to the council and GLA, of which £13.3m is
working age support attributable to the council
ØLCTS in Greenwich is within
the top quarter of ratios between “working age support to
council tax income” in London
Øaround half of
London’s councils have recently consulted on changes to their
working age schemes, also to take effect from 2025/26
Agreed that, following many
years of structural under funding and in order for the scheme for
working age claimants to remain affordable, the maximum level of
support for working age claimants of LCTS changes from 100% to 80%,
so that all households make a minimum contribution of 20% towards
the total council tax bill (before support)
Agreed to increase the earnings
taper for working age residents from 15% to 25%.
Agreed to increase the
non-dependant deduction charge from £5 to £10 per
week
Agreed to also remove the
exemption for non-dependants who are in receipt of passported
benefits and / or not in work.
Agreed to abolish the second
adult rebate for working age claimants
Agreed to allow the use of DWP
notifications of a claim for Universal Credit as a claim for Local
Council Tax Support.
Agreed to create a Greenwich
Supports Discretionary Council Tax Hardship Fund to assist Council
Tax payers whom are experiencing financial hardship caused by the
2025/26 scheme changes, combined with cost-of-living pressures,
low-incomes and low financial resilience.
Delegated to the
Cabinet member for Inclusive Economy, Business, Skills and
Greenwich Supports to agree details of the Hardship Fund and its
implementation.
Related Meeting
Council - Wednesday, 29th January, 2025 7.00 pm on January 29, 2025
Supporting Documents
Details
| Outcome | Recommendations Approved |
| Decision date | 29 Jan 2025 |