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Agenda item

Council Tax Support Scheme for 2025/2026

Purpose

To consider and approve the revised Council Tax Support Scheme for the financial year 2025/2026.

 

Recommendations

That Full Council resolves to:

1.    Approve the increase to income bands as detailed within paragraphs 3.2, 3.3 and Annex A of this report from 1 April 2025.

2.    Agree that any surplus in the Hardship Fund is transferred over to 2025/2026 for reasons detailed in paragraphs 3.6 and 3.7 of this report

Minutes:

The purpose of the report was to consider and approve the revised Council Tax Support Scheme for the financial year 2025/2026.

 

The Deputy Leader and Cabinet Member for Finance and Transformation, Councillor Evemy, introduced the report.

 

·         The scheme is brought in advance of the Budget so that the calculations for the Council Tax for the new financial year

·         Council Tax Support was important for many of the most vulnerable in communities

·         The Cost of living was continuing pressure on those on lower incomes and the bands for Council Tax Support need to keep pace with increasing costs. The proposals would see bands increased by 4% in order to keep the real terms value of the support.

·         The Council residents in receipt of Council Tax Support have a benefit of £5 million, but the support is vital for those residents on the lowest of incomes.

·         The amount of support is based on their income and the family composition in order to target support effectively.

·         An estimated increase of £28,000 of increased support of which £2,000 would come from the Council and the rest would come from the County Council and the Police and Crime Commissioner.

·         The Hardship Fund provides for those residents in exceptional circumstances outside of the Council Tax Support Scheme with an estimated £33,000 remaining which was recommended to be carried over.

·         The Council had consulted on this and Citizens Advice Bureau had been engaged in the consultation on the scheme to provide valuable advice.

 

Councillor Bloomer reserved their right as the seconder.

 

It was noted how important the scheme was to vulnerable residents in the District any help provided was welcomed.

 

There was a question regarding the caseload and if there was a financial limit on support. It was highlighted that the scheme sets out the criteria and the support residents were entitled to. If a significant increase was seen, this would have to be revised to check on the level of support for the following year. However the benefit to those most vulnerable residents outweighed any costs or little money which would be received from those being billed.

 

The Chair asked about care leavers given the difficult circumstances, and was there any specific support for them. Councillor Evemy’s concurred with the comments regarding care leavers but the understanding was there were not part of this scheme as these were income dependent. The Business Manager noted that the Council does have a discount scheme for carers up to the age of 25 through Gloucestershire County Council referrals.

 

There was a question on the impact of literature from the Council about the cost of living, and if there was a way to measure this. There was also a question regarding a specific case of the Council asking individuals to repay an overpayment of housing benefit and if discretionary housing payment was available to alleviate the pressure. Councillor Evemy noted one leaflet would be hard to measure in terms of the impact but this was important to make sure residents were aware of the help available. The Business Manager on discretionary housing payment scheme, people would be eligible in receipt of housing benefit or the housing element of Universal Credit but they would look at the income and expenditure of the household. However they were not able to comment on the specifics of the case.

 

There were comments around the structure of Council Tax and the need to update the bands given that these were set over 30 years ago.

 

It was highlighted that there were many people who were working but are in poverty.

 

Councillor Claire Bloomer as the seconder then made the following points:

 

·         The scheme would provide valuable benefits to residents who were struggling.

·         The last Cabinet meeting received a report on the work of officers providing cost of living support.

 

Councillor Evemy summed up and made the following points:

 

·         On Council Tax scheme, it was highlighted that reform was needed for the benefit of taxpayers.

·         The Council Tax support scheme allows for more children unlike other benefits like child benefit which has a limit of two children.

·         Prior to 2013, Council Tax Support was set nationally. As they are now set locally, there was pride in the policies of the Council.

 

 

 

 

 

 

Supporting documents:

 

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