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:

1.1         To note the contents of this report and the financial implications for the council.

1.2         To approve

·         The option of no change to the Council Tax Reduction Income Banded Scheme for Working Age Customers for 2024-2025

·         To amend Working Age Regulations in line with annual uprating and to amend the Council Tax Regulations for pensioner in line with uprating announced by Department for Levelling Up  Housing and Communities

Resolved

(1)          That report and the financial implications for the council be noted.

(2)          That the option of no change to the Council Tax Reduction Income Banded Scheme for Working Age Customers for 2024-2025 be approved and it be agreed to amend Working Age Regulations in line with annual uprating and to amend the Council Tax Regulations for pensioners in line with uprating announced by Department for Levelling Up  Housing and Communities.

The Assistant Director of Finance submitted a report to enable Council to consider the proposed banded scheme for Council Tax Reduction for 2024- 25 

In introducing the report, the Portfolio Holder for Finance, Councillor Nell, explained that the current scheme was introduced from April 2020 following a period of consultation and engagement. In general, it had been well received with limited contact from customers and it was proposed to continue with the current scheme, uprated for inflationary factors.

The scheme assessed 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. It was understood by customers and had enabled them to budget for their council tax payments, which was reflected in the Council Tax collection rates in Cherwell being the highest performer across the county for 2022 -23.

The current scheme reduced the number of changes that the customer would experience with less bills and notification letters generated and enables better personal budgeting. There was still a lot of financial uncertainty for many customers and in the current financial climate with the ongoing cost of living crisis it was therefore recommended that the existing scheme should be retained for 2024/25.

Resolved

(1)          That report and the financial implications for the council be noted.

(2)          That the option of no change to the Council Tax Reduction Income Banded Scheme for Working Age Customers for 2024-2025 be approved and it be agreed to amend Working Age Regulations in line with annual uprating and to amend the Council Tax Regulations for pensioners in line with uprating announced by Department for Levelling Up  Housing and Communities.

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:

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

1.2         To note the comments of the Budget Planning Committee at Section 5.

1.3         To recommend to Council that the current scheme (adjusted for inflationary factors) is retained for 2024/25.

Resolved

(1)           That the report and any financial implications for the Council be noted.

(2)           That the comments of the Budget Planning Committee be noted.

(3)           That Council be recommended to agree that the current Council Tax Reduction Scheme (adjusted for inflationary factors) is retained for 2024/25

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

In introducing the report, the Portfolio Holder for Finance explained that the current scheme was introduced from April 2020 following a period of consultation and engagement. In general, it had been well received with limited contact from customers. It was proposed to continue with the current scheme, uprated for inflationary factors.

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

The current scheme reduced the number of changes that the customer would  experience with less bills and notification letters generated and enabled better personal budgeting. There was 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.

Resolved

(1)          That the report and any financial implications for the Council be noted.

(2)          That the comments of the Budget Planning Committee be noted.

(3)          That Council be recommended to agree that the current Council Tax Reduction Scheme (adjusted for inflationary factors) is retained for 2024/25

Reasons

The current scheme is understood by customers and has enabled them to budget for their council tax payments. One of the main advantages of the banded scheme is that it reduces the number of changes that the customer will experience enabling more effective 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.

Alternative options

The alternative option is to undertake a review of the current Council Tax Reduction Scheme but the reasons for the recommendation explain the rationale for not taking this course of action.