Agenda item

(Finance Portfolio Holder) To consider the attached report (C-040-2016/17).

(1)        That the responses to the consultation on the scheme for 2017/18 be noted;

(2)        That the scheme be amended to remove the family premium in the calculation for new claimants in line with other welfare reforms;

(3)        That the scheme be amended to withdraw Local Council Tax Support where a person leaves Great Britain for 4 weeks or more in line with other welfare reforms;

(4)        That the scheme be amended to limit the number of dependant additions to a maximum of two for all cases where dependants were born on or after 1 April 2017, in line with other welfare reforms; and

(5)        That the amended Local Council Tax Support Scheme for 2017/18 be recommended to the Council for approval.

The Finance Portfolio Holder presented a report on the Local Council Tax Support Scheme for 2017/18.

The Portfolio Holder reminded the Cabinet that, as part of the major changes to the Welfare Benefits system, Council Tax Benefit ended on 31 March 2013 and was replaced by a new scheme called Local Council Tax Support (LCTS). A key principle of the scheme was the protection of people who were of an age where they could claim Pension Credit. The Government introduced Regulations to ensure that pensioners who had previously received Council Tax Benefit would continue to receive the same level of assistance they had prior to the LCTS being introduced.  The Pan Essex LCTS project group, comprising of all the billing authorities and the unitary authorities in Essex, was created in January 2012 to devise a modular approach upon which all Essex authorities could base their local schemes according to local needs. The precepting authorities of Essex County Council, Essex Fire Authority and Essex Police were also involved from the beginning of the project. The project was managed by the Benefit Managers under guidance from the Essex Finance Officers Association.

The Portfolio Holder reported that the Council had approved the Epping Forest LCTS scheme for 2013/14 in December 2012, and for the first 3 years, the scheme remained unchanged. In December 2015, the Council had approved two amendments to the scheme for 2016/17, the first being that the maximum percentage of discount was reduced from 80% to 75%, and the second being a change to the calculation of self-employed income to align the LCTS with Universal Credit. 

The Portfolio Holder stated that on 21 July 2016, the Cabinet approved the general principle that the Scheme for 2017/18 should aim to be cost neutral for the Council and that public consultation should be undertaken on certain elements of the Scheme to align it with other Welfare Reform changes that had either already been implemented, or were due to be implemented by April 2017. These were as follows:

            (i)         to remove the family premium in the calculation for new claimants;

            (ii)        to withdraw Local Council Tax Support where a person left Great     Britain for four weeks or more;

            (iii)       to limit the number of dependent additions to a maximum of two for all         cases where dependents were born on or after 1 April 2017; and

            (iv)       to reduce the maximum period for backdated claims by people of     working age from three months to one month.

The Portfolio Holder informed the Cabinet that consultation on the 2017/18 scheme was undertaken from 15 August 2016 to 15 October 2016, and a total of 58 responses were received. Following the consultation period, it was decided not to reduce the maximum period for backdated claims by people of working age in the Scheme for 2017/18; in particular, it was felt that one month would not be long enough in cases of bereavement and the Hardship Fund could not be used to make any payments in these circumstances. The Cabinet was requested to recommend the revised Scheme for 2017/18 to the Council for final approval.

In response to questions from the Members present, the Assistant Director of Resources (Benefits) confirmed that the legislation referred to Great Britain, not the United Kingdom, so Northern Ireland was not included and any absence period would commence when the claimant left the mainland (i.e. England, Scotland or Wales), and the main reasons for the reduction of approximately 534 claimants during the last year was the implementation of a minimum income floor for self-employed persons and the general improvement in the economy. The Portfolio Holder also undertook to respond to Members in writing regarding the two wards within the District that would be most affected by the proposed amendments to the Scheme.

Decision:

(1)        That the responses to the consultation on the scheme for 2017/18 be noted;

(2)        That the scheme be amended to remove the family premium in the calculation for new claimants in line with other welfare reforms;

(3)        That the scheme be amended to withdraw Local Council Tax Support where a person leaves Great Britain for 4 weeks or more in line with other welfare reforms;

(4)        That the scheme be amended to limit the number of dependant additions to a maximum of two for all cases where dependants were born on or after 1 April 2017, in line with other welfare reforms; and

(5)        That the amended Local Council Tax Support Scheme for 2017/18 be recommended to the Council for approval.

Reasons for Decision:

Due to various welfare reforms that the Government had introduced for other state benefits, and also in Local Council Tax Support for people of pension age, it was proposed to make changes to the Local Council Tax Support scheme for people of working age from 1 April 2017. This would align the Council’s scheme with the welfare reform changes and the Local Council Tax Support scheme for people of pension age.

If any changes were to be made to the current scheme either for financial or other reasons, the Council needed to approve the final scheme on 20 December 2016.

Other Options Considered and Rejected:

To not agree and recommend the revised scheme to the Council for approval; however, if the Council did not approve the amended Scheme by 31 January 2017, then the existing Scheme would have to continue in operation for 2017/18.