Issue - meetings

Purpose of Report

To propose options for consultation on a 2025/26 Council Tax Support scheme, and an accompanying Exceptional Hardship Payments scheme.

Decision

(1)          That the following options for a 2025/26 Council Tax Support scheme be moved forward for public consultation and scrutiny:

·       ‘No change’ scheme, and/or

·       Banded scheme for all working age customers

(2)          That an Exceptional Hardship Fund of £25,000 for 2025/26 be approved.

Alternative Options Considered and Rejected

As set out in Section 5 of the report to the Executive, two options for a Council Tax Support Scheme would be subject to public consultation and scrutiny:

• Option 1: No change to the current scheme.
• Option 2: Introduction of a ‘banded scheme’ for all working age customers.

Reasons for the Decision

The Council Tax Support Scheme (CTS), which replaced the national council tax benefit system on 1 April 2014, may be determined by each billing authority, after consultation with precepting authorities, key stakeholders and residents.

As at 30 June 2024, there were 8,278 residents claiming Council Tax Support in the City of Lincoln. 2,546 were pensioners who were protected under the legislation and received Council Tax Support as prescribed by the Government (broadly similar to the level of Council Tax Benefit). It was the 5,732working age (including those classified as ‘vulnerable’ for CTS purposes) claimants where a local scheme could be determined which could change the level of support provided.

Unless a decision by the Council was made to apply scheme changes to vulnerable working-age customers, the localised CTS scheme would historically only be applied to non-vulnerable working age customers. The definition of vulnerable working-age customers was clarified within the officer’s report.

The current split of the 5,732 (30 June 2024) working age CTS recipients was as follows:

• Working age (vulnerable): 3,357;
• Working age (not vulnerable): 2,375.

The current, 2024/25 scheme contained the following restrictions for working age customers:

• Capital limit £6,000;
• Minimum entitlement of £2 per week;
• Property banding capped at Band B, so that a customer residing in a Band C and above property, would only have their CTS calculated on Band B liability;
• Backdating restricted to one month; and
• Temporary absence from home in line with Housing Benefit regulations.

The Council was actively involved in benchmarking with other local authorities, the latest exercise in relation to Local Taxation provided information regarding City of Lincoln Council’s CTS scheme 2023/24 and its impacts, as detailed at paragraph 4.2 of the officer’s report

In this Council’s Medium Term Financial Strategy (MTFS), the budgeted cost of the 2025/26 CTS scheme was £1.304m (i.e. City of Lincoln Council’s share 14.3%, - (with the estimated total scheme cost of c£9.369m dependent on increases in the main preceptors levels of Council Tax).

Changes to the CTS scheme may be made for both non-vulnerable and vulnerable working age customers, however pension age residents were ‘protected’ and the ‘default’ government scheme effectively applied. If the Council wished to continue protecting vulnerable working age CTS recipients, then any changes to the CTS scheme would  ...  view the full minutes text for item 33