Decision details

To present the final proposals for changes to the local Council Tax Support (CTS) Scheme, effective from 1 April 2025.

In considering the report Cabinet noted the following comments made by Councillor Lorber (who had requested to speak on the item).

Councillor Lorber began his remarks by highlighting the significant impact he felt the proposed changes to the Council Tax Support Scheme would have on local residents already struggling as a result of the cost-of-living crisis. In considering mitigations to the impact of the proposed changes, he suggested that the Universal Credit system should not be used as the basis of the backdating rules for new CTS claims as the system was not felt to work effectively.  In considering the report, Councillor Lorber felt that there had not been enough time to make residents aware of the changes to allow them to make any necessary adjustments, with concerns expressed about the extent and meaningfulness of the consultation process given the preferred option which had been identified as the basis of that process following the initial modelling undertaken.  In highlighting the response provided as part of the consultation by Brent Citizens Advice, Councillor Lorber concluded by urging Cabinet to consider as minimum increasing the level of the financial hardship Support Fund for residents from £1.5m to £3m.

Having noted the representations received, Cabinet RESOLVED to approve and recommend the following changes to the Council Support Scheme for consideration any approval by Full Council on 27 February 2025:

(1)        That the revised Local Council Tax Support (CTS) Scheme for 2025-26 incorporate the following changes: introduce a standard 35% minimum payment for working age households and apply a percentage reduction to each of the income bands. This means all CTS claimants would be expected to contribute a minimum of 35% towards their Council Tax liability. Their CTS would then be calculated based on their income and that would determine which income band they feel into. This would reduce the cost of the scheme by £7.6m with detailed explanations and calculations, number of residents impacted and the proposed weekly reduction in CTS outlined in Appendix A of the report.

(2)        Simplification of the non-dependant charges incorporating two flat rate non-dependant deductions for most households with other adults living in the property, £8 per week for non-dependants “out of work” and £20 per week for non-dependants “in work”. This would remove the need to verify income for non-dependants for CTS claims and reduce the administrative burden. Adopting this proposal would reduce the cost of the scheme by £0.7m with detailed explanation and calculations of the proposed non-dependant deduction, number of households affected and proposed weekly reduction in CTS support outlined within Appendix B of the report.

Technical and administrative changes

(3)        To note that the amendments to CTS scheme would include the Universal Credit notification received from DWP for Council tax, as start date of claim for Council tax reduction if there was entitlement to it.

(4)        To note the alignment of the backdating rules for new CTS claim with the Housing Benefits and Universal Credit regulations i.e. for a maximum of one calendar month. The backdating request is made at the time of submission of a new claim. This change would reduce the administrative burden, and customers would not lose out as the start date would be accepted as per DWP notification date to start date of entitlement. In exceptional circumstances, the Council would consider revising the claim for more than a month e.g. bereavement of close relative.

(5)        To note that the income bands for households was reviewed every year in line with the Consumer Pricing Index (CPI) from September of previous year to be considered for the new financial year.

(6)        To note that a review and update of section 13A policy for hardship fund for Council tax, including an additional £1.5m fund to support residents, would be considered at the March 2025 Cabinet meeting.

Eligible for call-in: No (report and recommendations referred to Council)