The Deputy Chief Executive/Director of Finance presented details of proposals for the replacement of Council Tax Benefit (CTB) which were set out in the Department for Communities and Local Government (DCLG) consultation paper ‘Localising Support for Council Tax in England’. In general terms the proposals outlined an intention to give local authorities the power to introduce a scheme that would allow Councils to provide financial support to pay Council Tax using a new form of discount as opposed to having to apply centrally set rules. It was intended to achieve an overall saving of 10% of the current national CTB bill of £4.8 billion; simplify the current complex system of criteria and allowances; establish stronger incentives to local authorities to encourage local people back into work and protect pensioners and other vulnerable groups against any potential reduction in support.

The Director set out the key issues for local authorities and commented that the timescales were of significant concern, with only a 12 to 14 month period to develop a workable and financially viable scheme. He outlined a response to the consultation paper, which had been agreed by the Cabinet on 22 September 2011 (minute 118 refers). In response to a question from a Member in relation to the local authority sharing data collected by the Department for Work and Pensions (DWP), in order to determine the rebate, the Director indicated that the consultation paper cited that the DWP collected all the data that local authorities needed for new claims already. However, most local authorities, including Wirral, could demonstrate that this was not the case and such an assumption around such a key matter, which affected administration, was misleading and needed to be addressed in the legislation.

Resolved –

(1)  That the response to the consultation paper be noted.

(2)  That further progress reports be presented to future meetings of the Committee.