Content

8.1

The Committee considered a report of the
Director of Children and Families which outlined the proposal to
introduce a more simplified system by which Care Leavers in
Sheffield, aged between 18 and 21, could be supported to reduce
their Council Tax liabilities.

 

 

8.2

RESOLVED UNAMIOUSLY: That the
Finance and Performance Policy Committee:
 
1.   
Approve the proposed change in approach to reducing Council Tax
liabilities for Care Leavers Council Tax Exemption Scheme between
the ages of 18 and 21 to take effect from 1st April 2025
2.   
Approve the proposal to allow backdated applications to the start
of the financial year in which the application is made (but no
earlier than 1st April 2025)
3.   
Agree to the clearing of current council tax arrears for Care
Leavers.
4.   
Agree that support for Care Leavers with a Council Tax Liability
outside of the City be determined on a case-by-case basis based on
the individuals’ circumstances

 

 

8.3

Reasons for
Decision

 

 

8.3.1

The proposal to provide full Council Tax
support to Care Leavers 18-22 is an excellent investment to improve
the lives of Care Leavers giving them a strong start to adult
life.

8.3.2

The approach will support young care leavers
aspirations, growing independence and ability to deal with new
financial responsibilities.

 

 

8.3.3

This has clear advantages in both the short
and long term for the care leavers and the Council.

 

 

8.4

Alternatives
Considered and Rejected

 

 

8.4.1

Provide full support until 25 years old -
There are 104 care leaver accounts where the care leaver is aged
between 22 and 25. The table below shows what the total net
liability would be for this group once all statutory exemptions
were applied to the accounts.
 

Age Range

No of Accounts

Gross Liability

Exemptions &
Discounts

Net Liability

22-25

104

£154,311.79

£32,368.61

£121,943.18

 

 

 

As for the 18-22 age group assuming similar
numbers of Care Leavers in 2025/26, a 5% increase in Council Tax
and paying the 15% precept to South Yorkshire Police and South
Yorkshire Police and Fire the cost of fully supporting this age
group would be c£147,000, Therefore, should the Council
choose to offer support under the proposed scheme for all 18 to 25
year olds, then the overall cost would be c£242,000 for
2025/2026 This would have the same benefits as Option 1 and would
provide support for longer. However, this may also increase the
cliff edge for 25 year olds when
statutory support from the Leaving Care service ends. It increases
the overall cost to the local authority. The Leaving Care Service
does not recommend this option be approved by Members

 

 

8.4.2

Provide full support to 18-22 year olds and graduated support until 25 years
old -All LA’s who offer support to Care Leavers in relation
to their Council Tax liabilities offer support to
18–21-year-olds, with some but not all, offering some support
to 22- 25 year olds. One option considered would be to offer
reduced support for this age group in order
to provide some assistance but also to ready them for the
move to a potential full charge when they become 25. The table
below shows what this might look like for 2025/26 based on the
assumption set out above regarding Council Tax increases and
payments to precepting authorities.

 

 

 

No of Accounts

Cost of 100%
support

Cost of 75%
support

Cost of 50%
support

Cost of 25%
support

104

£147,000

£110,250

£73,500

£36,750

 

 

 

This would provide the same benefits as Option
1to 18–21-year-olds and reduce the impact of responsibilities
for young people as they “age out” of statutory
support, allowing them greater time to adjust to this additional
financial responsibility. However, this approach may increase the
complexity of the offer to Care Leavers, which is something the
recommended approach avoids, and it could increase administrative
costs. The additional challenge is that after 21years, Care Leavers
become increasing independent and young people choose to no longer
receive ongoing individual support from the Leaving Care Service,
therefore the opportunity to support young people to access and
understand a graduated level of support will reduce. The Leaving
Care Service does not recommend this option be approved by
Members

 

 

8.4.3

No change to the current approach - By not
changing the current approach the future cost of the scheme would
not increase significantly, other than by the annual inflationary
pressures of council tax increases. However, this approach has
 
• Already been criticised for not
offering a clear, simple process of support to care levers
• Been shown to not offer the same
support to all care leavers
• Been shown to be administratively
burdensome and inefficient
• Been shown to create debt which is
difficult to collect
 
For the above reasons the Leaving Care Service
does not recommend this option be approved by Members