The Performance and Finance Scrutiny Sub-Committee of Harrow Council met on Tuesday 23 July 2024 to discuss the annual review of the Council Tax Support Scheme for the 2025-26 financial year. The committee noted their comments on the proposed scheme and forwarded them to the Cabinet for consideration.

Annual Review of the Council Tax Support Scheme for 2025-26 Financial Year

The Sub-Committee considered the annual review of the Council Tax Support (CTS) Scheme for the 2025-26 financial year, with the report to be presented to Cabinet on 25 July 2024. Cabinet will be asked for authority to conduct a full consultation as required by legislation. A subsequent report will be submitted to the Sub-Committee and Cabinet detailing the consultation results.

Councillor David Ashton, Portfolio Holder for Finance and Highways, introduced the report and outlined the background to the proposed consultation. The Sub-Committee was informed that Council Tax Support was previously funded by central government grants, with local authorities administering it alongside Housing Benefit. However, this changed in April 2013 with the introduction of a locally determined system for council tax support.

During the discussion, the Sub-Committee raised several questions and made comments. Regarding the protection of vulnerable residents from Council Tax increases, it was explained that a range of options had been considered, including adjustments to income band thresholds, maximum award rates for different household types, and non-dependent deductions. Vulnerable households would retain the protection of an 86% maximum award rate, while non-vulnerable working-age households would see a reduction to a 50% maximum award rate.

The proposed consultation period is from 5 August 2024 to 27 October 2024. Five consultation sessions are planned across Harrow, with more to be added if necessary. Ward Councillors will be invited to attend these sessions, and all councillors will be informed of the dates and venues.

In response to a question about how Harrow's CTS scheme compares to other boroughs, it was noted that while Harrow's scheme was previously less generous, it has become more so since 2019, exceeding some comparator boroughs. CTS costs are also being impacted by the migration of claimants to Universal Credit, as the scheme adopted in 2019 was more generous to Universal Credit claimants. The current working-age scheme is split between those on Universal Credit and those not. The revised CTS scheme will be implemented from April 2025, coinciding with the managed migration of Universal Credit, which is expected to be completed by December 2025. Approximately 141 households are anticipated to remain on the non-Universal Credit scheme. This scheme is means-tested and uses the same criteria as the Universal Credit system, retaining protections for vulnerable groups.

The Sub-Committee questioned the council's approach if the consultation resulted in negative feedback. It was clarified that the consultation is not a referendum, and Cabinet will make an informed decision considering general savings, the budget's state, and the consultation feedback.

A pre-consultation meeting with the Voluntary and Community Sector (VSC) is planned to identify potential barriers for affected residents in accessing the consultation and to understand which groups with protected characteristics might be impacted. This will ensure their views inform the consultation process.

The Chair thanked Councillor Ashton and the officers for their contributions. The Sub-Committee's comments were noted and will be forwarded to Cabinet for consideration.

The meeting, which began at 6:30 pm, concluded at 7:28 pm. Councillor Jerry Miles was appointed Vice-Chair for the 2024-2025 Municipal Year. No reserve members attended, and no declarations of interest, public questions, or petitions were received. The minutes from the meeting on 14 December 2023 were signed as a correct record.