Purpose

Cabinet is recommended to approve the request
to consult on the proposed reduction to the MIG uplift.

Content

Cabinet:
 

(1)         
agreed that a consultation should be carried out on the proposed
changes to the Fairer Contributions Policy discretionary uplift
applied to the Minimum Income Guarantee, as set out in paragraph
3.14 of the report; and
 
(2)         
noted that analysis of
the consultation will be undertaken, and the outcome and
recommendations will be brought back to Cabinet for decision in
November 2025.
 
 
Options &
Alternatives Considered
 
No change: Do not proceed with
the public consultation and maintain the current policy which
includes a 25% discretionary uplift to the Minimum Income
Guarantee. This is not considered a viable option due existing
financial pressures on the Council’s financial
sustainability.
 
Two alternative options were
considered as part of this review:
·        
Consulting on an immediate reduction of the
discretionary uplift to the Minimum Income Guarantee from 25% to
5%, and
·        
Consulting on the immediate removal of the
discretionary uplift, aligning support with the national Minimum
Income Guarantee levels
 
These options were not
considered feasible. While they could generate income for the
Council, they would not provide a sufficient transitional period
for residents. Implementing such changes immediately could result
in significant financial pressures and increase the risk of
hardship for those affected.
 
Proposed Option: Proceed with a
public consultation on the potential phased reduction of the
discretionary uplift of the Minimum Income Guarantee from 25% to
10% initially, and further reduction to 0% in subsequent year. This
consultation would enable an assessment of the impact to residents
and explore how a managed transition could be supported if changes
were implemented. The consultation process would help determine the
feasibility and implications of this approach while ensuring that
residents views are taken into account.