Agenda item - Key Decision - Review of the Council Tax Support (CTS) Scheme

Report of the Corporate Director of Resources.

RESOLVED: That

(1) for the purposes of calculating income support entitlement, the key figures, as set out in the report, be uprated in line with the rate used by the government;

(2) having considered whether to review the Local Scheme, it be agreed that there was no need to review it, and the two year Council Tax Support (CTS) Scheme, as originally adopted by full Council on 21 January 2013, be continued;

(3) it be noted that the Council Tax Support (CTS) Scheme was fit for purpose and required no fundamental changes.

Reason for Decision: The localised Council Tax Support (CTS) Scheme was determined by full Council and implemented on 1 April 2013 after extensive consultation designed to ensure that residents within Harrow were given the opportunity to comment and help shape the final scheme provisions.

The Scheme design and consultation process were based upon retaining the provisions for two consecutive financial years, 2013/14 and 2014/15, so long as key conditions remained unchanged. This was to ensure that awards of Council Tax Support did not exceed the government funding made available and for it, as far as reasonably practicable, to enable a degree of stability for claimants and their families.

There had been no significant fundamental changes, either in caseload, demographics, the economy or funding, which required the Council to consider reviewing or replacing the Scheme as determined by full Council. However, some parameters required an inflation uplift as set out in the determined Scheme. Harrow was updating the Local Scheme to meet those requirements and as such was recommending minor changes to ensure, operationally, assessments were carried out under the same rules and applied consistently.

Alternative Options Considered and Rejected: To undertake a review of the Scheme.

Conflict of Interest relating to the matter declared by Cabinet Member / Dispensation Granted: None.

The Portfolio Holder for Finance introduced the report, which informed Members of the requirement to consider a review of the localised Council Tax Support Scheme introduced on 1 April 2013. He added that legislation required the Council to consider whether, for 2014/15, the Scheme needed to be revised or replaced.

The non-voting non-Executive Cabinet Members referred to the reasons why the Scheme had been put in place which was to help the vulnerable and asked if the administration, which had been critical of the proposal in the past, had changed its view and their long term commitment to the Scheme. They asked if the administration would join the campaign on Council Tax benefit. Another non-voting non-Executive member asked how an underspend would be addressed.

In response, the Portfolio Holder for Finance stated that the Scheme itself was not under consideration and was merely being reviewed. The Scheme had to be approved soon and there was not sufficient time to make any changes even if the administration had wanted to. A number of changes relating to the finances of the Council would be made and this avenue would be used, if necessary, to channel back money for those in need. In respect of meeting a 70% collection rate, it was not clear at this stage whether this would be met as the available data was poor.