Agenda item

Members gave consideration to a report which sought agreement to amend the Discretionary Council Tax Energy Rebate Scheme, previously agreed by delegated decision on 9 May 2022.

Earlier in the year, the Government had announced the Council Tax Energy Rebate Scheme to assist residents with the rising costs of energy by making a payment of £150 according to their council tax bands.

The scheme had been split into two areas of work; the core scheme being for residents in council tax bands A-D and which is fully funded and the discretionary scheme, intended for residents in bands E-H.

Government Funding had been allocated for this purpose with any underspend to be paid back to Government.  It was also stressed any overspend would have to be met by the Local Authority.  The scheme was due to close on 30 November 2022.

The delegated decision taken in May, in respect of the discretionary element was summarised to Committee and was available publicly and had enabled automatic payments of £150 to be made to anyone in Bands E to H in a vulnerable category, leaving the remaining balance to allocate to anyone else in Bands E to H to make an application with supporting evidence of financial hardship.

Members noted that since the Scheme launched 351 accounts in bands E-H had received a payment and of the original allocation £117,300 remained unspent. 

Four options in respect of extending the discretionary scheme, to assist West Lindsey residents with their energy bills, had been considered, with each detailed within the report.  The option being recommended to the Committee was option 1; a small payment to all Band E Council tax account holders who had not yet received a payment. 

The rationale for this preferred Option was outlined to Members and contained in Section 6 of the report.

Debate ensued and Members remarked on the hard work undertaken by the team to administer such schemes since the onset of, first the pandemic, and now cost of living measures.  

Whilst acknowledging the payment to each account was small, Members considered this to be a pragmatic approach and a preference to the funding being returned to Central Government.  The approach was fully supported across the Chamber and although it was a very small amount, Members considered it would be welcomed by a large number of people, targeted those it had been demonstrated had not received assistance to date and that it would be foolhardy to return funding to Central Government.

Members sought indication as to the additional costs associated with administering such schemes and making such payments, and whether this had to be taken from the total funding allocation, met by the Authority or funded separately.

Whilst it was not feasible for Officers to provide a transaction cost for per applicant currently, Officers did confirm that only that week notification had been received from the Government, that administering organisations needed to complete an application for what were deemed “New Burdens”, which was the funding towards administering the Schemes.

To-date the local authority had received £56,000 towards administration costs, but that had nearly been fully utilised on IT costs, postage costs and an additional temporary Officer to help with the additional work. There were a lot of extra costs to the Authority, there was now opportunity to apply for further funding and Officers were currently undertaking that process.

In responding to questions Officers outlined how eligible recipients from bands D-H had been identified initially, how the remaining fund had been advertised and promoted and the hardship test which had been applied; evidence of energy bills in arrears.  Council Tax accounts in arrears had also been approached as this was often a sign of hardship.  Assurance was sought and received that if more residents eligible for the £150 were identified through any means, then the full £150 payment would be made.  The smaller payments referenced in the report, would only be made right at the end of the Scheme post 30 November.  Assurance was also offered that the team provided a service where they would complete the forms on behalf of residents who made contact, there was no reason for residents to struggle with online applications and paper forms. 

On that basis it was RESOLVED that

(a)    the existing Council Tax Energy Rebate Discretionary Scheme be amended and option 1 approved, namely: -

·       a small payment, estimated at approximately £33, be made to all eligible households in Council Tax band E, who have not already received a Council Tax Energy Payment, noting the resulting small surplus which may arise and would be refunded back to Central Government and that payments would be made direct to Council Tax accounts thus reducing the instalments due; and

(b)    Delegated authority be granted to the Section 151 Officer to make any minor amendments to the estimated £33 payment, in respect of the Scheme.

Note:       Having sought advice during the discussion, Councillor John McNeill declared a non-registrable interest as a Band E property owner, and given he may be entitled to such a payment, remained in the meeting but did not take part in the discussions or vote.