Agenda item

The Executive Member for Finance and Governance and the Director of Finance submitted a report for the Executive’s consideration. The purpose of the report was to seek approval for the Council Tax Support (CTS) scheme for 2021/2022.

From 1 April 2013, the Government replaced the national Council Tax Benefit scheme with a new CTS scheme to be designed and administered by local authorities. The Government passed that responsibility to councils with a 10% cut in the grant funding and prescribed that pensioners must be no worse off under any local scheme. That translated into an effective reduction in funding for working age claimants of 20% and meant that some residents, many of whom had previously been required to pay nothing, now had to pay at least 20% of their Council Tax. Middlesbrough’s scheme had been approved by full Council on 9 January 2013 and remained unaltered (apart from some minor legislative changes) until 2018/2019 when the scheme was amended to bring regulations in line with the current Housing Benefit scheme, whilst also increasing the amount of support provided to 85% for working age residents. That, therefore meant residents claiming CTS had a minimum of 15% of their Council Tax to pay as opposed to the previous 20% charge.

The current CTS scheme was working well with no challenges to the regulations. Central Government had made some slight changes to the prescribed regulations between late December and early February each year, which would be incorporated into the new scheme. Apart from those minor changes, it was not recommended to alter any other elements.

OPTIONS

The Council could have reduced or increased the amount of support awarded. However, as indicated, the Council recognised the financial challenges placed on residents through the Government’s welfare reforms when increasing the CTS support for 2018/2019, therefore, that was not considered a viable option.

In addition, the Council was not in a financial position to consider awarding additional support without affecting other Council services. If that were to be considered, a full consultation exercise would have needed to be carried out which had not taken place during the current financial year.

ORDERED

That Council Tax Support (CTS) scheme for 2021/2022 be approved and the report be considered at the full Council meeting, of 24 February 2021.

REASONS

The Council recognised the financial challenges faced by some residents due to the Government’s welfare reforms when increasing the amount of support provided through the CTS scheme in 2018/2019. The roll out of Universal Credit (UC) in Middlesbrough, which commenced in October 2018, had been a challenge for some residents to claim CTS although the Revenues and Benefits Service had amended its procedures so that UC claimants could be smoothly transitioned on to CTS.

As the only changes to the scheme were minor legislative changes, set by Central Government, no stakeholder consultation had been carried out. Similarly, those proposals had not been examined by the Overview and Scrutiny Board or by a Scrutiny Panel due to the scheme remaining the same.