Issue - meetings

This report presents the outcome of the consultation process undertaken on proposed changes to the Local Council Tax Support (CTS) scheme 2025-26 and seeks Cabinet approval to recommend the proposed changes to Full Council on 27 February 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.  ...  view the full decision text for item 7

Prior to considering the report, Councillor Muhammed Butt (as Leader of the Council) advised that he had accepted a request from Councillor Lorber to speak on the proposals being presented for consideration in relation to the Council Tax Support (CTS) Scheme. In addressing Cabinet, Councillor Lorber began 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.  Councillor Lorber also felt 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 undertaken given the preferred option which had been identified as the basis of that process, following the initial modelling undertaken. In highlighting the responses provided as part of the consultation, including those by Brent Citizens Advice, Councillor Lorber ended by urging Cabinet when considering the proposals and impact locally to consider, as a minimum, increasing the level of the financial hardship Support Fund from £1.5m to £3m.

Having noted the comments and representations made, the Leader then moved on to invite Councillor Donnelly-Jackson (as Cabinet Member for Housing & Resident Services) to introduce the report from the Corporate Director Partnerships, Housing & Resident Services detailing the outcome of the consultation process which had been undertaken on the proposed changes to the Local Council Tax Support Scheme and seeking approval to recommend the final changes outlined to Full Council on 27 February 25 for formal adoption.

In presenting the report, Councillor Donnelly-Jackson began by highlighting the challenging financial context within which the proposals being presented for consideration had needed to be developed involving the Council having to deliver a range of essential demand led services amidst rising costs and growing financial pressures. This had led many local authorities, including Brent, to have to re-evaluate every aspect of spending in order to identify where the greatest efficiencies could be unlocked enabling the Council to achieve more with less.  Whilst recognising that Brent remained in a relatively robust financial position, it was pointed out the Council had still been required to review all areas of spending and deliver significant savings in order to be able to deliver a balanced budget.  The growing costs identified in relation to the current Council Tax Support Scheme had been identified as one of the resulting areas in which it would be possible to make changes that would not only alleviate the administrative burdens of the scheme but also deliver significant cost savings that would enable the Council to continue providing support for other vital services and the most vulnerable residents.

In recognising the important role of the Council Tax Support scheme in supporting many  ...  view the full minutes text for item 7