Issue - meetings

Councillor Anne Welburn as Chairman of the Corporate Policy and Resources Committee, was pleased to present the report to Council which sought approval of the Council Tax Support Scheme for 2022/23, on recommendation from the Corporate Policy Resources Committee

The scheme had not been amended significantly since 2019/20 due to the implementation of Universal Credit and the subsequent pandemic.  Data available showed that it had been an effective scheme and that the collection rate for Council Tax Support claimants last year was just over 95%.  The high collection rate had been aided by the introduction of discretionary hardship relief to assist council tax payers during the pandemic and was funded by central Government for 2020/21 and 2021/22.  

Covid19 continued to cause considerable financial hardship to many of the District’s residents with the uplift of Universal Credit ending and the impending fuel increases expected in April yet to be felt within the council tax collection rates.

Option 1 within the report had been supported by the Corporate Policy and Resources Committee at their meeting in December 2021 and as such was recommended to Full Council for approval and adoption from 1 April 2022.

Councillor Welburn concluded her introduction by moving the recommendation, which was duly seconded. 

Thanks were expressed to all the Staff within the Revenues and Benefits Service and it was acknowledged their collection rate sat within the top quartile of all local authorities, something Members considered should be openly praised.

On being put to the vote it was:-

RESOLVED that the Recommendation from the Corporate Policy and Resources Committee be accepted and Option 1 of the report be adopted as the Local Council Tax Support Scheme for West Lindsey District Council for 2022/23.

The Committee gave consideration to a report from the Revenues Manager regarding the Local Council Tax Support Scheme for 2022/23. Members heard that since the inception of the LCTS scheme on 1 April 2013, relatively minor changes had been made, which had enabled claimants to receive a similar level of support each year and enabled the council to maintain an annual council tax collection rate of around 98%. It was highlighted that due to the health and economic impacts of Covid-19 on the residents of West Lindsey during 2020/21 and 2021/22, it would be need to be considered whether it was appropriate to impose a further financial burden during 2022-23 on those already experiencing hardship. The pandemic was still causing considerable financial hardship to some residents, as demonstrated through the discretionary hardship applications. The uplift of £20 per week for Universal Credit claimants had also ended, resulting in additional financial hardship for those individuals affected. A significant change to the LCTS scheme for 2022/23 was likely to have a negative impact on the collection rate and reduce the yield over the year.

With this in mind, Members were advised that the recommended option was given the report as Option 1:

“To apply any new legislative requirements and the uprating of the nondependent charges, applicable amounts, and household allowances and deductions, used in the calculation of the reduction in accordance with the Department for Works and Pensions (DWP) annual ‘Upratings’.

To apply any additional changes to government welfare benefit regulations during the year which are intended to increase the income of benefit recipients to avoid unintended consequences to customers.

There would be no direct saving to the council under this option as it would just maintain the current scheme.”

Furthermore, it was explained that Full Council must approve and adopt the finalised LCTS scheme by 31 January 2022 at the latest.

Members were supportive of the proposal and satisfied with the detail provided within the accompanying report. On being moved, seconded and voted upon, it was unanimously

            RESOLVED that

a)    The content of the report be noted; and

b)    the adoption of Option 1 of the report, for the Local Council Tax Support Scheme for West Lindsey District Council for 2022/23, be recommended to Full Council.