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The Cabinet Member for Finance, Growth and
Core Services presented a report on the outcome of the public
consultation on proposals for a new, statutory local Council Tax
Support (CTS) scheme for working age recipients for 2024/25.
 
The Cabinet Member reminded colleagues that
the Government’s welfare reforms, which included the
introduction of the Universal Credit (UC) system to replace Housing
Benefit (HB), Income Support and other benefits / tax credits,
meant that the Council’s current CTS scheme had become far
less aligned with HB administration.  The welfare reforms also meant that many more
individuals became liable for paying towards their Council Tax and
the amount of support given to local authorities, to help those on
very low incomes with their Council Tax bill, had been cut by
approximately 10% by Government.
 
As a consequence,
the Cabinet considered alternative CTS models at its October 2023
meeting and its preferred option was an ‘income banded
discount’ scheme, described as Model 1 in the report, which
was more aligned with the new benefits regime, easier for the
Council to administer and, most importantly, simpler for claimants
to understand whilst being less reactive to changes to their
individual circumstances.
 
A public consultation exercise took place
between 23 October and 24 November 2023 and covered a range of
issues, including alternative options. The consultation was widely
promoted on the Citizens Alliance Network website alongside the
main Council website, via social media and awareness campaigns via
the BD_Collective.  Furthermore, every CTS claimant was written to
directly and direct engagement was sought from key voluntary sector
partners, the Citizens’ Advice Bureau and the Disablement
Association for Barking and Dagenham.
 
The Cabinet Member advised that although the
level of survey responses was relatively low, the response to the
Model 1 scheme was predominantly positive and acknowledged the need
for change.  Individual comments and
issues raised by respondents had been reflected upon and the
intention was for the new CTS scheme, which was set out at Appendix
1 to the report, to take effect from 1 April 2024.  The Cabinet Member also referred to the proposal to
carry forward £250,000 Council Tax Discretionary Hardship
Funding, provided within the Welfare Reserve, from 2023/24 to
2024/25, to provide additional support for those local residents who may be slightly worse off under
the new CTS scheme.  
 
The Assembly resolved to:
 
(i)  Agree,
in light of the positive response to the
public consultation, to adopt Model 1 as set out in sections 1.17 -
1.20 of the report as the Council’s replacement Council Tax
Support Scheme for 2024/25; and
 
(ii)  Agree the
carry forward of £250,000 Council Tax Discretionary Hardship
Funding, provided within the Welfare Reserve, from 2023/24 to
2024/25.