Agenda item

The Shadow Overview and Scrutiny Committee is asked to comment on the proposal set out at 4.1 of the report.  Committee’s feedback will be presented for consideration by the Shadow Executive Committee at its February 2019 meeting.

The Head of Revenue & Benefits (DCP) presented a report setting proposals for Local Council Tax Support scheme (LCTS) for Dorset Council.

 

As part of the LGR discussions with the Ministry of Housing, Communities and Local Government (MHCLG) it was agreed that the Council would be allowed up to two years to agree an aligned LCTS scheme. This was in recognition that significant resources would be utilised to successfully implement the new Unitary Council and that there may not, initially, be the capacity to support the creation of an aligned scheme.

 

However, members were advised that officers were of the view that there was the capacity within existing resources to create an aligned LCTS scheme from 1 April 2019. The report considered the benefits of having an aligned scheme for 2019/20 and the opportunities that this would bring to help reduce customer confusion and local authority administration. A consultation exercise had taken place with customers and stakeholders.

 

In presenting his report and in response to comments from Councillors outside of the meeting, the Head of Revenue & Benefits reported the following amendments to his report.

 

1.    Appendix 2- Existing LCTS schemes (pages 25 and 26 of the agenda) needed to be amended for EDDC and NDDC so that the section headed “Who is protected under the scheme? Reads:-

 

Pensioners

 

Those receiving:

Disability Premium, Enhanced Disability Premium, Severe Disability Premium, Carer Premium, Disabled Child Premium,

The Support Component within their Employment Support Allowance

 

Those in receipt of War Disablement Pension, War Widows Pension or War Widows Disablement Pension

 

Universal Credit recipients, who are not pensioners, but the applicant or their partner is in receipt of an income or premium listed above.

 

2.    Appendix 3 – LCTS Options (pages 27 and 28 of the agenda) needed to be amended for Option B so that part was amended to:-

 

Option B - aligned scheme with a maximum support for those of working age (not protected) limited to 90%

Under this option, the Dorset Council CTS would be aligned as follows:

 

•             The scheme would be means tested and similar to the old Council Tax Benefit scheme (where appropriate)

•             Protection would be provided to the following types of claimant:

§  Pensioners

§  Those where the applicant (or partner) are receiving:

·         Disability Premium, Enhanced Disability Premium, Severe Disability Premium, Carer Premium, Disabled Child Premium or the Support Component within their Employment Support Allowance

·         Disability Living Allowance or Personal Independence Payment but are not in receipt of one of the premiums mentioned above

§  Those in receipt of War Disablement Pension, War Widows Pension or War Widows Disablement Pension

§  Universal Credit recipients, who are not pensioners, but the applicant or their partner is in receipt of an income or premium listed above.

•             The maximum entitlement for protected claimants would be 100%

•             The maximum entitlement for those claimants who are not protected would be 90% (based on Council Tax liability)

•             The scheme would provide support for those that have a second adult living with them who is on low income (Second Adult Rebate)

•             The scheme would not include a limit on the lowest amount given

•             The maximum period of backdating that can be awarded is 1 month. (This links with the rules relating to Housing Benefit and should help reduce customer confusion)

•             A Family Premium will not be applied in the award calculation if it relates to a new claim or a new family from 1 April 2017. (Also links to  the rules relating to Housing Benefit and should help reduce customer confusion)

•             If the claimant is temporary absent from the UK up to 4 weeks would be awarded (subject to conditions). However, up to 52 weeks would be awarded if the absence relates to a bereavement, or the claimant receiving medical care, etc. (Again, this links with the rules relating to Housing Benefit and should help reduce customer confusion).

•             If the claimant is receiving Universal Credit (UC), CTS would be awarded for a period of 6 months and calculated on an estimated UC average income for that period. The period would come to an end if UC was no longer in payment. Additionally, the claimant would be entitled to ask for a review of their entitlement, during that period, if their circumstances had significantly changed.

 

 

The committee was asked to consider 3 options set out within the report Option A, the status quo, Option C, aligned scheme with a maximum support for those of  working age (not protected) limited to 85% and Option B, aligned scheme with a maximum support for those of  working age (not protected) limited to 90%.

 

Members were advised that Option B was an aligned scheme where everyone would be treated consistently regardless of where they lived in the Council area and help those on UC to budget more easily.  Although these amendments addressed some of the committees concerns, members sought further assurance regarding the following:-

 

Foster Carers allowance

Impact on Kinship Carers

Effect on Seasonal workers, for example tenant farmers

Separated couples

 

It was suggested that any councillor that had detailed concerns should report them to the Scrutiny Officer by 16 January 2019 in order that these issues could be considered by the Chairman of the Finance Work Stream and Section 151 Officers prior to the report and recommendation being considered by the Shadow Executive Committee on 11 February 2019. The final decision would be made by the Shadow Dorset Council at its meeting on 20 February 2019.

 

Overall, subject to those detailed concerns set out above being addressed most members of the committee supported Option B as the fairest scheme proposed, however it was recognised that the council needed to ensure that the most vulnerable members of the community were protected and supported.

 

Cllr N Lacey-Clarke proposed that Option B be adopted as the LCTS scheme for Dorset Council but with a maximum support for those of working age (not protected) limited to 91.5%.  This was seconded by Cllr J Somper.

 

In making the recommendation Cllr Lacey-Clarke felt unable to support a reduction in support whilst council tax was likely to increase in some areas.

 

Upon being put to the vote the motion was carried.

 

Recommendation to Shadow Executive Committee

 

That the Shadow Overview & Scrutiny Committee supports Option B be adopted as the LCTS scheme for Dorset Council but with a maximum support for those of working age (not protected) limited to 91.5%.