Content

10.1

The
Senior Revenue and Benefits Manager introduced the report which o
provided the Committee with details of the Council’s review
of its Council Tax Reduction Scheme and sought approval that the
scheme for 2026/27 should not be amended, apart from statutory
changes the Council is required to make. In addition, the report
sought approval to maintain the Council Tax Hardship Scheme in
2026/27.

 

 

10.2

RESOLVED UNANIMOUSLY: That the Finance and
Performance Policy Committee:-
 
a)   
Notes the review of the Council’s Council Tax Reduction
Scheme, detailed in this report;
b)   
Agrees that, in line with the review, the Council’s Council
Tax Reduction Scheme is not revised, apart from the changes the
Council is required to make by statute;
c)   
Approves the amendments to the Council’s Council Tax
Reduction Scheme to accommodate the changes the Council is required
to make by statute; and
d)   
Agrees that the Council’s Council Tax Hardship Scheme
continues to operate as detailed in this report.

 

 

10.3

Reasons for Decision

 

 

10.3.1

Legislation requires each Billing Authority to annually consider
whether to revise or replace its Council Tax Reduction Scheme. For
that purpose, we have carried out a review of the Council’s
scheme

 

 

10.3.2

Following from this review, it is recommended that the CTRS
remains unchanged, as whilst reducing the support offered through
the scheme may help with the Council’s financial situation,
this is countered by the fact that the burden will fall on
vulnerable households who continue to experience financial hardship
as a result of the cost-of-living
crisis.

 

 

10.3.3

It is
also considered that maintaining the scheme in its current form and
at the same level of support offers stability and reassurance to
households facing ongoing financial pressures.

 

 

10.3.4

In
reaching this recommendation, the Council has explored increasing
the level of support. However, given the Council’s current
financial position, introducing a more generous scheme would be
extremely challenging.

 

 

10.3.5

By
maintaining the CTHS, the Council will nevertheless be able to
continue offering targeted support to those in the most severe
financial need, including those least able to change their
financial situation.

 

 

10.4

Alternatives Considered and Rejected

 

 

10.4.1

Changing the Cap on
Liability:
 
Sheffield replaced the Council
Tax Benefit scheme in 2013 with a CTRS which was closely aligned in
the way they it calculated entitlement. Most local authorities took
the same approach when CTRS was introduced but some tweaked aspects
of the scheme for their own purposes. For example, some authorities
chose to reduce the capital limit which meant that fewer of their
customers with savings would be eligible to claim CTS. Others, like
Sheffield, chose to limit the amount of CTS that could be awarded
by introducing a cap on a customer’s Council Tax liability.
In Sheffield, support offered to working-age customers is capped at
77% of their net Council Tax liability.

10.4.2

Given
the advantages of maintaining the current scheme into 2026/27 the
alternatives were disregarded.