Decision details

Each year the Council is required to consider whether to review its Local Council Tax Reduction Scheme (LCTRS).  Report number: CAB/WS/21/044 advises about the conclusion of the 2020 annual review of and the resultant proposals for consultation for changes to the Scheme to take effect from April 2022.

The Portfolio Holder for Resources and Property will be asked to review the Council Tax Reduction Scheme for 2022-2023 in line with the proposals outlined within Section 2 and that the relevant consultation is undertaken in accordance within Section 4 of Report number: CAB/WS/21/044.

Resolved:

That the West Suffolk Local Council Tax Reduction Scheme for 2022-23 be reviewed in line with the:

1.           Proposals outlined in Section 2. of Report number CAB/WS/21/044; and that

2.           Relevant consultation be undertaken, in accordance with Section 4. of Report number CAB/WS/21/044.

Section 2 of the paper set out the proposed changes to the West Suffolk Local Council Tax Reduction Scheme that would take effect from 1 April 2022.  If implemented, these changes would affect:

1.   The threshold for how much capital a customer could own (for example, savings) and still be entitled to a Council Tax reduction.

2.   The impact that living with non-dependent adult friends or family members had on the Council Tax reduction that a customer receives.

3.   The relationship between the application processes for Universal Credit and for Local Council Tax Reduction.

4.   The way in which fluctuations in a customer’s earnings were taken into account in the Local Council Tax Reduction Scheme (LCTRS).

The main driver for these changes was a streamlined customer journey; certainty and consistency of entitlement; reduced information requirements on customers; and better use of DWP and HMRC data.

A short consultation exercise would take place in early October to early November 2021.  The consultation would take the form of an online survey, asking stakeholders for their views on the proposals and any unforeseen impacts. The link to the survey would be sent to all Members; made available on the Council and ARP websites and sent to stakeholders working with individuals who were likely to be affected by the proposals or who represented residents with a protected characteristic, for example, CAB, debt and money management services and local disability groups.  Preceptors would also be consulted on the proposals by letter.

Two further options were considered. These were a) increasing the contribution rate to more than 8.5%; and b) capping LCTRS entitlement to Band D liability.

For both options, the possible increase in Council Tax collected for the Council was considered to be less than the additional costs of recovery (additional staff, postage and enquiries to customer services), including the inability to recover the debt in year by deduction from DWP benefits and therefore this was not recommended.