Agenda item

The Committee heard from the Revenues Manager who explained that the Committee were being requested to make a recommendation to Full Council regarding the proposed Local Council Tax Support Scheme for 2024/25. It was explained that Council Tax Benefit had been 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%.

In 2020, 2021 and 2022, 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.

Following the allocation of these awards, it was also possible to introduce discretionary hardship funds for all council taxpayers to apply for if they continued to experience financial difficulties caused by the pandemic. It was highlighted that, to date, the Council had assisted 2,102 families, already in receipt of council tax support with an award of up to £50 off their council tax account. A further 74 council taxpayers had been assisted by the award of a council tax discretionary hardship payment in respect of their 2023/24 council tax liability.

Members heard that a significant change to the LCTS scheme for 2024/25 was likely to have a negative impact on the collection rate and reduce the yield over the year. Full Council must approve and adopt the finalised LCTS scheme by 31 January 2024 at the latest.

The Committee thanked the Revenues Manager for her report and clear options. A Member of the Committee commented on the cost of living crisis, but recognised the position as detailed in the report. In response to a question regarding the consultation responses, it was agreed for the Officer to provide this information where possible.

Having been moved, seconded and voted upon, it was unanimously

RESOLVED that the Corporate Policy & 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 2024/25. 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 in the calculation of the reduction in accordance with the Department for Works and Pensions (DWP) annual ‘up-ratings’.

To also 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.”