Issue - meetings

The Committee gave consideration to a report presented by the Revenues Manager, seeking to adopt a Local Council Tax Support Scheme for 2026/27. It was explained that Council Tax Benefit was a national scheme providing means-tested financial help for low-income households to pay their Council Tax liability. This was abolished on 31 March 2013 by the Local Government Finance Act 2012 which placed a legal requirement on every billing authority to adopt a Localised Council Tax Support (LCTS) scheme. 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%. This was just in the top quartile collection rate in the country.

Members heard that in 2020, 2021, 2022 and 2023, following the Covid-19 pandemic, the Government awarded a grant to all local authorities for a payment to be paid to all working aged council tax support claimants. This was paid directly to council tax accounts and it also permitted the use of any surplus to support economically vulnerable people and households. No such grant had been made available since 2023/24 and therefore those still struggling financially since the pandemic had not had any additional assistance since 31 March 2024.

It was highlighted that any significant change to the LCTS scheme for 2026/27 was likely to have a negative impact on the collection rate and reduce the yield over the year. It currently remained an affordable system which was able to provide assistance to low income households. When considering the scheme for 2026/27, consideration needed to be given to the government’s plans for Local Government Reorganisation which would see West Lindsey District Council restructured into an upper tier Unitary Council. This restructure would mean that the current council tax reduction scheme would require modifications to consider new populations and to consider all the schemes in force at each district council at that time. Therefore, it was possible that any significant changes for 2026/27 could be changed again within a year or two, with potential negative impacts on council tax support claimants navigating entitlement to new awards.

Members were reminded that the finalised LCTS scheme was required to be approved and adopted by Full Council, by 31 January 2026.

With thanks to the Officer and her team for their continued hard work and dedication, the recommendation contained within the report was duly proposed and seconded. On taking the vote 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 2026/27 be RECOMMENDED to Full Council. That being:

·         to make no changes to the current council tax support scheme apart from to apply any new legislative requirements and the uprating of the non-dependent charges, applicable amounts and household allowances and deductions, used  ...  view the full minutes text for item 73