Policy & Resources Committee				18 September 2019
Council Tax Reduction Scheme 2020-2021
Final Decision-Maker		Full Council
Lead Head of Service/Lead Director		Stephen McGinnes Mid Kent Services Director
Lead Officer and Report Author		Sheila Coburn Head of Mid Kent Revenues and Benefits Partnership
Classification		Public
Wards affected		All
Executive Summary
Each year Full Council has to approve the Council Tax Reduction Scheme for the following year.   Where there are changes proposed, it is necessary for a public consultation to take place, requiring an early decision on any proposed changes.   This report recommends there are no changes to the current scheme for 2020-2021 for the reasons set out in paragraph 2.8.
This report makes the following recommendations to this Committee:
1.   That this committee recommends to Council to carry forward the 2019-2020 Council Tax Reduction scheme to 2020-2021 with no changes to the scheme.   2.    That this committee notes that in the absence of any proposed change, no public consultation will be undertaken.
Timetable
Meeting			Date
Corporate Leadership Team			20 August 2019
Policy & Resources Committee			18 September 2019
Council			11 December 2019

Council Tax Reduction Scheme 2020-2021

 

1.       CROSS-CUTTING ISSUES AND IMPLICATIONS

 

Issue	Implications	Sign-off
Impact on Corporate Priorities	Homes and Communities. The council needs to balance the needs of low income households with the wider interest of local taxpayers to ensure that vulnerable residents are protected whilst providing a scheme that is affordable.	Sheila Coburn, Head of Mid Kent Revenues and Benefits Partnership
Risk Management	The risks associated with implementing and operating the scheme are low. Endorsement of a scheme helps reduce the risk.	Sheila Coburn, Head of Mid Kent Revenues and Benefits Partnership
Financial	CTR reduces the amount of Council Tax that can be collected. The cost of the scheme is met in full by the council and preceptors. The total cost of the scheme is £9.7 million	Finance Team
Staffing	No impact	Sheila Coburn, Head of Mid Kent Revenues and Benefits Partnership
Legal	Section 13A of the Local Government Finance Act 1992 requires the Council to adopt a Council Tax Reduction Scheme. Schedule 1A of the Act requires the Council to consider whether to revise or replace its scheme for each year.    The Act contains a statutory duty to consult on a proposed scheme, with guiding principles for fair consultation set out in case law. As the proposed 2020-2021 scheme is unchanged from the current year 2019-2020, and consultation took place in 2017, no further consultation is necessary	Keith Trowell, Team Leader (Corporate Governance), MKLS
Privacy and Data Protection	The Council already holds information on its residents and it is anticipated the same information will be held under any new scheme.   The data will be held and processed in accordance with the data protection principles contained in Schedule 1 to the Data Protection Act 1998.	Keith Trowell, Team Leader (Corporate Governance), MKLS
Equalities	The recommendations do not propose a change in service therefore will not require an equalities impact assessment	Equalities and Corporate Policy Officer
Public Health	We recognise that the recommendations will not negatively impact on population health or that of individuals.
Crime and Disorder	No impact	Sheila Coburn, Head of Mid Kent Revenues and Benefits Partnership
Procurement	No impact	Sheila Coburn, Head of Mid Kent Revenues and Benefits Partnership

 

 

 

 

2    INTRODUCTION AND BACKGROUND

 

2.1  The Council Tax Reduction Scheme (CTRS) was introduced in April 2013 as

       a replacement for Council Tax Benefit (CTB), a national scheme

       administered on behalf of the Department for Works and Pensions (DWP).

 

2.2  When the government gave responsibility to local government to introduce

       a local scheme, funding in the form of a Grant was cut by 10%.

       Government also protected the entitlement of elderly claimants meaning

       the reduction for working age population was in the region of 20%.

 

2.3  Councils introduced a local scheme which each year must be approved by   

       Full Council.

 

2.4   The scheme is ‘underpinned’ by the Kent-wide agreement, which recognises

        that all Kent districts (as the billing authorities) will seek to have a common

        ‘platform’.

 

2.5   Councils in Kent have, or are in the planning stages of implementing a

        banded scheme

 

2.6   Any changes to the scheme for any year have to go for public consultation

   before being approved.

 

2.7   The current scheme for 2019-20 was approved by Full Council in

 December 2018 with no changes being made.

 

2.8   With changes within the welfare system, the current scheme is

   becoming outdated, promoting consideration across Kent of a simpler

   banded scheme.

 

2.9   Whilst further analysis is being undertaken to model the impact of

        moving to a banded scheme, it is proposed  that no changes are made for

        2020-21 for the following reasons:

 

·         Universal Credit went live in November 2018 and the current financial year 2019-2020 is the first full financial year to assess the impact of the changes for households in receipt of welfare benefits

·           Simplified schemes are being introduced across the country and the

  impact for claimants and costs associated can be better measured using

  the knowledge gained from other authorities

·           Time needs to be spent modelling any changes to the current scheme. We

  will be able to use detailed and accurate data from software that has

  become available, but this could not be completed in time for

  implementation in 2020-2021

 

 

 

 

3   AVAILABLE OPTIONS

 

3.1   Option 1 – Move to a new scheme. The problems with implementing a new

        scheme for 2020-21 are detailed in 2.8.

 

3.2   Option 2 – Revise the current scheme.  Whilst work is being undertaken to

        model the impact of moving to a simpler banded scheme, the current

        scheme is held to be effective.  Should Committee seek to make any

        changes to the current scheme those changes would need to be modelled

        and a public consultation completed before making recommendation to Full

        Council in December 2019.

 

3.3           Option 3 – Maintain the current scheme.  In agreeing to the

   recommendation not to make any changes to the 2020-2021 scheme,

   recommendation would be made to Full Council to re confirm the scheme,

   with no public consultation required.

 

 

4       PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

 

4.1   Option 3 is the preferred option for the reasons set out above.

 

 

5         RISK

5.1    The risks associated with this proposal, including the risks if the council does

       not act as recommended, have been considered in line with the Council’s

       Risk Management Framework. The risks associated with implementing and

       operating the scheme are reduced through effective modelling and

       consultation to ensure that the impact of any change is understood.

 

6     CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK

 

6.1   Depending on the recommendation agreed by this Committee, a public consultation may need to take place.

 

 

7         NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

 

7.1     The final decision at Full Council will be notified to those households’ affected and key stakeholders.

 

8         REPORT APPENDICES

 

 

9         BACKGROUND PAPERS

 

None