The Committee considered the report of the Interim Director of Finance informing of the Authority requirement to establish a Local Council Tax Support Scheme, known as Council Tax Support (CTS) to replace Council Tax Benefit (CTB) from April 2013.  This was a key strand of the Government’s wider Welfare Reform review.  The scheme also brought with it reduced funding from Central Government.

The report proposed a Local Council Tax Support Scheme to replace CTB for 2013/14 that managed the £3.2 million shortfall in Government funding which was based upon current, and increasing, levels of CTB.  There were associated costs that increase the shortfall to a maximum of £3.635 million.  In addition, the change also increased the likely level of non-collection of Council Tax by up to £1 million gross / £0.85 million net, and this needed to be included within the Budget Projections for 2013 / 14. 

The Council must approve a scheme no later than 31st January 2013 or the Government default scheme, requiring the shortfall to be fully funded by the Council, will be imposed.  Members were asked to approve a scheme to Council.

In response to Members, Malcolm Flanagan, Head of Revenues, Benefits and Customer Services indicated that services would be provided from existing staff who would receive the appropriate training to deal in any matter arising. Welfare and Debt agencies would also be available to offer support and guidance.

In response to Members concerns regarding waiting times to those dialling into call centres, Mr Flanagan indicated that this was issue that the Department would be looking into, but there would be cost implications.

On a motion proposed by Councillor Doughty, seconded by Councillor Hodrien and Councillor Muspratt, Members thanked the Head of Revenues, Benefits and Customer Services and his Department for their excellent report and work undertaken.

In response to Members, Mr Flanagan indicated that the suggestion of the introduction of a means test would make the process more difficult to manage. Mr Flanagan indicated that in relation to the definition of vulnerable groups, this could be looked at in Year 2.

Mr Flanagan responded to Members questions in relation to income regarding empty properties, In particular schemes used within other Authorities.

RESOLVED (8:1 Councillor Gilchrist voted against the Motion)

That it is recommended to Council that:

(1)  Eligible Pensioners and Vulnerable Groups (disabled, disabled child and war pensioners) be protected under the Local Council Tax Support Scheme; 

(2)  The Local Council Tax Support Scheme proposed for 2013/14 be Scheme 1 with the associated proposals that will see Working Age Claimants meet 22% of the Council Tax payable in order to meet the £3.2 million reduction in Government Grant; 

(3)  The annual increase in caseload, estimated at 1% (£300,000) per year be included with the Budget Growth Projections for 2014/15 onwards; 

(4)  The potential losses on collection of £1 million gross / £0.85 million net be incorporated within the Council Tax Base calculation and that this reduction in Council Tax Income be reflected in the Budget Projections for 2013/14, funded from the change in the Council Tax discounts; and

(5)  Thanks are extended to those residents who participated in the Council Tax Benefit consultation, ensuring the consultation was meaningful.