Issue - meetings

Report for decision.

ORDERED that Executive:

a)    Approve the refreshed Exceptional Hardship Fund - Section 13A (1) (a) Policy, which includes an additional element for some Care Leavers as set out in 4.5 below; and,

b)    Approve that delegated authority be provided to the Chief Finance Officer to make minor modifications to the Policy in consultation with the Executive Member for Finance.

The Executive Member for Finance submitted a report for Executive consideration which sought approval for adoption of the refreshed Exceptional Hardship Fund - Section 13A (1) (a) Policy under the Local Government Finance Act (LGFA) 1992 (as amended).

The report explained the need to review the existing policy and outlined the introduction of an additional element to provide further support for certain Care Leavers. It was noted that a reciprocal regional agreement had been developed between the twelve North East local authorities regarding council tax liabilities for Care Leavers, and that Executive approval was required to adopt and extend the updated policy.

Members noted that the previous Exceptional Hardship Fund Policy had last been amended on 26 April 2022 and was due for review during the 2025/26 financial year. Directors of Resources had supported the development of a reciprocal regional arrangement to ensure that Care Leavers under 25 did not pay council tax, and a working group had been established to finalise an agreement between the twelve North East authorities. The Council’s Council Tax Reduction Scheme already provided a 100% reduction for Care Leavers under 25, meaning the impact of the new agreement would be minimal. However, as some Care Leavers may not qualify for CTR and could still face council tax liability, the updated policy proposed the introduction of a discretionary reduction in such cases. It was noted that any financial impact of awards would be minimal and met from existing resources, and that no other changes to the policy were proposed. Members were also informed that continued government funding through the temporary Household Support Fund had enabled support to taxpayers, reducing potential Section 13A demand, but the forthcoming transition to a Crisis Resilience Fund from April 2026 might increase applications under the policy depending on future funding flexibilities.

OPTIONS

By extending eligibility under the policy further or increasing the value of awards would likely come at a cost to the Council. There was no clear evidence that would suggest a further change is necessary which would justify further cost.

Not extending the policy to provide for the situations where the Council needs to cover the cost of Care Leaver council tax would be administratively more involved as this would require further manual intervention, additional cost and potentially prone to error.

ORDERED that Executive:

a)    Approve the refreshed Exceptional Hardship Fund - Section 13A (1) (a) Policy, which includes an additional element for some Care Leavers as set out in 4.5 below; and,

b)    Approve that delegated authority be provided to the Chief Finance Officer to make minor modifications to the Policy in consultation with the Executive Member for Finance.

REASONS

The proposed scheme confirmed, following review, the Council’s ongoing approach to requests for additional financial support reducing council tax liabilities and has been extended to provide additional support to Care Leavers in certain circumstances.

The Council was required to have a policy to set out a framework within which it would provide the additional support.