Issue - meetings

Report of Assistant Director of Finance

Purpose of report

To enable members to consider the proposed banded scheme for Council Tax Reduction for 2024-25.

The current scheme was introduced from April 2020 following a period of consultation and engagement. In general, it has been well received with limited contact from customers.  It is proposed to continue with the current scheme, uprated for inflationary factors.

The scheme assesses the maximum level of Council Tax Reduction based on the net income of the applicant and household members, the main principles of the scheme remain unchanged.  Pensioners are protected and continue to be eligible to receive 100% Council Tax Reduction

If the applicant or partner is in receipt of a passported benefit such as Income Support Job Seekers Allowance (JSA) income based and income related Employment and Support Allowance (ESA) or receiving War widows or War disablement pensions they will be placed into the highest band and will receive 100% Council Tax Reduction.

Working age households will receive a discount, depending on their level of income and the band that they fall into.

The current scheme is understood by customers and has enabled them to budget for their council tax payments, and this is reflected in the Council Tax collection rates with Cherwell being the highest performer across the county for 2022-23.

The current scheme reduces the number of changes that the customer will experience with less bills and notification letters generated and enables better personal budgeting.  There is still a lot of financial uncertainty for many customers and in the current financial climate with the ongoing cost of living crisis it is therefore recommended that the existing scheme should be retained for 2024.25.

Recommendations

The meeting is recommended to:

1.1       To note the contents of the report, and any financial implications for the Council.

1.2       To recommend to Executive that the current scheme (adjusted for inflationary factors) is retained for 2024/25

Resolved

(1)      That the contents of the report be noted.

(2)      That, having given due consideration.  the Executive be recommended to agree that the current scheme (adjusted for inflationary purposes) is retained for 2024/25.

The Committee considered a report from the Assistant Director of Finance to enable members to consider the proposed banded scheme for Council Tax Reduction for 2024-25.

The Revenues and Benefits Manager explained the existing income banded scheme was introduced in April 2020 and in general had received good feedback from residents.

The Revenues and Benefits Manager advised that the Council tax reduction scheme had remained the same but adjusted for inflationary purposes and that the scheme had set a maximum level of Council Tax reduction based on net income of the applicant and household members.

Following questions from the Committee, the Revenues and Benefits Manager confirmed that the reduction scheme had increased in line with the Council Tax increase.

It was proposed by Councillor Sean Woodcock and seconded by Councillor Matt Hodgson that Executive be recommended to agree that the current scheme (adjusted for inflationary purposes) be retained for 2024/25.

Resolved

(1)       That the contents of the report be noted.

(2)       That, having given due consideration, the Executive be recommended to agree that the current scheme (adjusted for inflationary purposes) be retained for 2024/25.