Purpose

To recommend to Council changes
to the Local Council Tax Support scheme for working age households
from 2025/26.

Content

Recommended Council to –
 
note that proposals in this 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
 
note 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
 
note that:
 
·       
the 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
·       
LCTS in Greenwich is within the top quarter of ratios between
“working age support to council tax income” in
London
·       
around half of London’s councils have recently consulted on
changes to their working age schemes, also to take effect from
2025/26
 
agree 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)
 
agree to increase the earnings taper for
working age residents from 15% to 25%.
 
agree to increase the non-dependant deduction
charge from £5 to £10 per week
 
agree to also remove the exemption for
non-dependants who are in receipt of passported benefits and / or
not in work.
 
agree to abolish the second adult rebate for
working age claimants
 
agree to allow the use of DWP notifications of
a claim for Universal Credit as a claim for Local Council Tax
Support.
 
agree 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.
 
delegate to the Cabinet member
for Inclusive Economy, Business, Skills and Greenwich Supports to
agree details of the Hardship Fund and its
implementation.