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RESOLVED:
 
1. 
That
Cabinet is asked to approve the Executive response, found in
Appendix 1, to the Scrutiny Panel Task and Finish Group Review of
the Council Tax Reduction Scheme.
 
2. 
That
Cabinet notes that the Council will be shortly undertaking a
consultation exercise with Hackney Residents on the proposal to
reduce the maximum contribution to 10% for
2024/2025.
 
REASONS FOR DECISION
 
The Council has recognised the continued impact of the cost
of living crisis and welfare reform on some of our poorest
communities. Some households with the least financial resources
have been hardest hit by government cuts, changes to benefits, and
increases in everyday living costs such as food, rent, and
utilities. As a result some of our poorest residents are facing
financial hardship and have found it difficult to pay contributions
towards their Council Tax.
 
Whilst seeking to provide additional financial support to
low income households the scope for amending the scheme is
constrained by the need to manage ongoing cuts in Central
Government funding.
 
The Council's task and finish group have recognised this
pressure on the Council and the intention to decrease the minimum
contributions from 15% to 10% balances both the increasing
financial pressures that our low income households face, against
the ongoing cuts in government funding. The change will affect
working age households only as the Council is legally prevented
from making any changes to the scheme for pension age
households.