Decision details

Cabinet received a report which was submitted following consultation to date on proposals for the Council Tax Support Scheme 2016/17 including discussion at the Joint Budget Scrutiny on 26 November 2015.

The purpose of the report was for Cabinet to make a recommendation to Council on the Council Tax Support Scheme to be implemented in Peterborough from April 2016 including the introduction of a council tax discretionary hardship policy.

Cabinet considered the report and NOTED:

1.  The feedback received to date on the consultation and proposed changes to the council tax support scheme, including the additional consultation response as tabled at the meeting;

And RESOLVED TO RECOMMEND TO COUNCIL:

2.  To approve a Local Council Tax Support Scheme for Peterborough that contains the following components, as set out in the report:

a)    No change to the existing scheme reduction of 30% for all eligible working age claimants;

b)    Aligns the Council tax support scheme to Housing Benefit rules making it less complicated for claimants, namely to:

i)             Limit backdating of council tax support to one month;

ii)            Removes family premiums from all new claimants, or existing claimants who would otherwise have had a new entitlement to the premium, with effect from 1 May 2016.

Cabinet further RESOLVED:

3.     To approve the introduction of a council tax discretionary hardship policy with effect from 1 April 2016.

The Council was statutorily required to approve a council tax support scheme by the 31 January 2016 having had regard for the council’s financial position and feedback from responses to the consultation. As part of the consultation, the council was consulting on a council tax discretionary hardship policy.

The Council was statutorily required to approve a local scheme by 31 January. Cabinet had discussed the current 30% council tax support scheme with the cross party Budget Working Group as part of ongoing budget discussions. Options discussed were:

·         One option would be to increase the 30% scheme, however this would have a negative impact on low income households with claimants having to pay more council tax.

·         Another option would be to reduce the 30% scheme, however, this would require the council to find savings of up to £2.4m from elsewhere in the budget.

None.

The Council Tax Reduction Schemes (Default Scheme) (England) Regulations 2012

The Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) Regulations 2013

The Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) (No. 2) Regulations 2014

The Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) Regulations 2015

The Housing Benefit (Abolition of the Family Premium and date of claim amendment) Regulations 2015 (S.I. 2015 No. 1857).