Agenda item

The Committee heard from the Revenues Managers received a report regarding the Local Council Tax Support Scheme for 2023/24. It was explained that the scheme required approval by Full Council and the consideration by Corporate Policy and Resources Committee was to make the recommendation to Full Council for approval.

It was explained that the 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.

In 2020 and 2021, following the Covid-19 pandemic, the Government awarded a grant to all local authorities for a payment to be made to all working aged council tax support claimants. This was paid directly to council tax accounts. It also permitted the use of any surplus to support economically vulnerable people and households.

These funds were now exhausted but had supported 374 families. A further discretionary hardship fund was agreed by the Corporate Policy and Resources Committee for 2022/23 in the sum of £31,717.85 which was the result of a refund of overpaid Magistrates court fees. To date, 27 families had been assisted from this fund.

It was highlighted that Full Council must approve and adopt the finalised LCTS scheme by 31 January 2023 at the very latest. The new Council Tax support scheme must be defined by individual Local Authorities

Officers were working with partners across the public and voluntary sectors to support West Lindsey residents, and particularly those who were vulnerable and hardest hit by the cost-of-living crisis. The current West Lindsey scheme was one of the most generous in Lincolnshire and, if looking at changing the scheme, all must be aware of impacting on those most affected by the cost of living increases and adding to their financial burden. The financial modelling showed that West Lindsey District Council could still bridge the funding by continuing with the current scheme for a further year. The existing scheme worked well and offered a high level of support for low income families who may otherwise find themselves in debt.

There had been a slight decrease this year in the number of households claiming LCTS which suggested that the situation was improving gradually as more claimants returned to work. Collection rates were being maintained under the current scheme. This option ensured the LCTS rules stayed consistent with the DWP rules which avoided confusion for claimants. Retaining existing policy principles of keeping LCTS in line with other key welfare benefits promoted equality.

It was noted that whilst option two, to make no changes to the current scheme for 2023/24, would afford slight savings to the Council, under this option it would effectively create a reduction in income for those affected.

Members thanked the Revenues Manager for the concise report and requested that thanks be extended to the team for their hard work and success with the collection rate.

Having been moved and seconded, and on taking the vote, it was unanimously

RESOLVED that the Corporate Policy and Resources Committee recommend to Full Council the adoption of Option 1 of the report for the Local Council Tax Support Scheme for West Lindsey District Council for 2023/24. Option 1 being:

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’.