Agenda item

(Finance Portfolio Holder) To consider the attached report (C-027-2017/18).

(Finance Portfolio Holder) To consider the attached background paper alongside the main report (C-027-2017/18).

(1)        That the responses to the consultation on the scheme for 2018/19 be noted;

(2)        That the scheme be amended to set six-monthly fixed period assessments for people receiving Universal Credit;

(3)        That the scheme be amended to disregard Bereavement Support Payments in line with other welfare benefits and the Local Council Tax Support scheme for people of pension age;

(4)        That the scheme be amended to allow a decision made by the DWP concerning other benefits to be disregarded when it was clear that their decision was incorrect; and

(5)        That the amended Local Council Tax Support scheme for 2018/19 be recommended to Council for approval.

The Finance Portfolio Holder presented a report on the Local Council Tax Support Scheme for 2018/19.

The Portfolio Holder reminded the Cabinet that, as part of the major changes to the Welfare Benefits system, from 31 March 2013 Council Tax Benefit was replaced by a scheme called Local Council Tax Support (LCTS). The LCTS Scheme had to be reviewed annually by the Council.  A key principle of the scheme was the protection of people who were of an age where they could claim Pension Credit, and the Government had regulations in place to ensure that pensioners continued to receive the same level of assistance as they would have done if the Council Tax Benefit scheme was still in place. The Council could therefore only make amendments to the Local Council Tax Support Scheme for people of working age.

The Portfolio Holder stated that 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 had been 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 on 11 July 2017, the Cabinet had approved the general principle that the Local Council Tax Support Scheme for 2018/19 should aim to be cost neutral for the Council and that public consultation should be undertaken on the following three elements of the Scheme:

            (a)        the introduction of six-month fixed period assessments for recipients            of Universal Credit;

            (b)        the disregard of Bereavement Support Payments to bring the Scheme         in line with other welfare benefits and the Scheme’s eligibility for people of      pension age; and

(c)        to allow a decision made by the Department of Work and Pensions (DWP) concerning other benefits to be disregarded when it was clear that their decision was incorrect.

The Portfolio Holder advised the Cabinet that the consultation on the 2018/19 scheme was undertaken from 18 August 2017 to 27 October 2017. A total of 96 responses was received which, although disappointing, was an improvement on the 58 responses received the previous year, due to the advertising of the Consultation on social media. Overall, the responses received to the Consultation did not highlight any issues to give cause to reconsider the three proposed changes listed above. Following the consultation period, the Scheme now needed to be approved for 2018/19 and the Cabinet was requested to recommend the amended Scheme to the Council for approval.

The Cabinet noted that Uttlesford District Council always achieved a much higher number of responses to their consultation and it was enquired as to the reason for this. The Assistant Director of Resources (Benefits) stated that the consultation undertaken by Uttlesford District Council always coincided with one of their residents’ Newsletters, which seemed to generate a higher response. The level of responses received by this Council to its consultation was at least on a par with, or better than,  other Essex authorities.

Decision:

(1)        That the responses to the consultation on the scheme for 2018/19 be noted;

(2)        That the Scheme be amended to set six-monthly fixed period assessments for people receiving Universal Credit;

(3)        That the Scheme be amended to disregard Bereavement Support Payments in line with other welfare benefits and the Local Council Tax Support Scheme for people of pension age;

(4)        That the Scheme be amended to allow a decision made by the DWP concerning other benefits to be disregarded when it was clear that their decision was incorrect; and

(5)        That the amended Local Council Tax Support Scheme for 2018/19 be recommended to Council for approval.

Reasons for Decision:

Due to various welfare reform changes that the Government had introduced, and also changes 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 2018. This would make the administration of the Scheme easier, and in particular for people receiving Universal Credit, and it would align the Council’s Scheme with other welfare benefits 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 21 December 2017.

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 any amendments to the Scheme by 31 January 2018, then the existing Scheme would continue in operation for 2018/19.