Review of Council Tax Support Scheme 2025/26

November 26, 2024 Cabinet (Cabinet collective) Approved View on council website
Full council record

Decision

That the Council be
recommended to amend the Council Tax Support Scheme for 2025/26 as
follows:
 

1.   
the self-employed minimum income floor calculation for households
that are not receiving Universal Credit and have a disability, or
caring responsibility is removed and is based on the actual income
received.
 

2.   
discounting any compensation payments made by the Post Office in
connection with the failings of the Horizon system.
 

3.   
discounting any additional settlement payments resulting from the
ongoing Grenfell Tower related civil litigation.
 

4.   
discounting any payments for the Vaccine Damage Payment Scheme.
 

5.   
discounting payments for Victims of Terrorist Attacks Abroad.
 

6.   
the income band with the highest level of discount is increased by
the September 2024 Consumer Price Index rate, at 1.7%.
 
That subject to 1. to
6. above the Cabinet:
 

7.   
notes that the amendments in 1 to 6 above will affect all working
age households in Torbay that will receive a Council Tax Reduction
from 1 April 2025;
 

Pension Age households will not be affected as they are part of the
national scheme, set by the Government.
 

8.   
notes that the Exceptional Hardship Fund will continue at
£100,000;
 

9.   
that delegated authority be given to the Director of Finance, in
consultation with the Cabinet Member for Housing and Finance, to
make any further adjustments required to the Exceptional Hardship
Policy and Fund and the Vulnerable policy; and
 

10. notes that when
deciding claims for Council Tax Support and Housing Benefit, the
Social Security Administration Act 1992 section 134(8)(b) and
139(6)(b) provides Local Authorities with the discretion to
increase the amount of war pension it disregards.  Local Authorities can introduce a local scheme to
fully disregard War Widow’s/Widower’s Pension or War
Disablement Pension remaining after the mandatory disregards have
been applied.
 

Torbay has fully disregarded this type of income and military
compensation payments for many years and for that reason would like
to remind Members of this arrangement when considering the renewal
of the 2025/26 Council Tax Support scheme.
 
It
also provides clarity that Members will continue to support this
arrangement, should it be required for the annual Housing Benefit
audit certification process.

Reasons for the decision

The Local Government
Finance Act 2012 requires that the Council Tax Support scheme is
reviewed annually and where a Council proposes changes to its
scheme it must consult on the changes. 
The Council must approve the scheme for the financial year 2025/26,
before 11 March 2025.

Alternative options considered

An alternative option would have been to
leave the current scheme unchanged which would have
resulted in a lower level of discount.
 

Details

OutcomeRecommendations Approved
Decision date26 Nov 2024
Effective from7 Dec 2024
Subject to call-inYes