To consider the Council Tax Support Scheme. 

Report considered by Cabinet 18^th October 2017 and by PMSC previously on 8^th November 2017, attached for information.

Contact: Phil Weir, Revenues and Benefits Service Manager, Phil.Weir@Shropshire.gov.uk

The Revenues and Benefits Service Manager gave a presentation on the proposed changes to Shropshire Council’s Council Tax Support Scheme containing the information requested by Members at their meeting on 8^th November 2017 [copy attached to the signed minutes].

Members consider five examples of how the proposed changes would affect different residents.  Members noted that in some of the examples the shortfall being made up through Discretionary Housing Payment (DHP) Grants.  The Head of Finance, Governance and Assurance explained that this was a fund which provided additional finance to assist Local Authorities support those most affected by some of the key changes in housing benefit.  It was not paid automatically and was seen as a transitional benefit.  He continued that there was £351,000 in unallocated funds which if it was not claimed would be returned to the Government. He continued that the fund had strict eligibility criteria which not all applicants could meet.  In response to a Member’s question regarding the bureaucracy of applying for the grant, the Revenue and Benefits Service Manager confirmed that they were looking to simplify the application process. 

The Head of Finance, Governance and Assurance observed that central Government had not indicated how long this fund would continue to be offered and it may be reduced with the introduction of Universal Credit.  In response to a Member’s query he confirmed that all eligible benefit claimants and partner organisations had been advised about the fund. 

The Revenue and Benefits Service Manager confirmed that the Council had to make the payment of DHP to the applicant and could not credit the amount against their Council Tax liability.  Members requested that the Chief Executive raise this with the County’s Members of Parliament. 

The Leader of the Liberal Democrat Group moved that due to large amount of information being presented that the meeting be adjourned and the item be continued at the next meeting of the Group.  A Member commented that this was the additional information requested at the previous meeting of the Committee and the underlying principles had already been explored. On being put to the vote this movement was lost.

Members considered the collection rates in neighbouring councils where a charge had been levied. The Head of Finance, Governance and Assurance observed that changes in collection rates were also impacted by other factors and so the changes in levels could not be seen as entirely due to changes in Council Tax Support Schemes.  He continued that the Financial Strategy had assumed a reduced collection rate following the proposed implementation the Council Tax Support changes. 

Members requested further information regarding the assistance that would be give to vulnerable people who would be expected to make a contribution to Council Tax following the change to the Council Tax Support Scheme.  The Revenues and Benefits Service Manager stated that his department would continue to actively engage with residents experiencing difficulties and would continue to work closely with the Citizens Advice Bureau and other partner organisations to mitigate the impact of the changes.

The Leader of the Liberal Democratic Group read out a letter received from a resident [copy attached to the signed minutes] expressing concern over the proposed changes.  The Revenues and Benefits Service Manager requested further details so he could investigate the issues raised. Officers explained that this element of DHP administration was administered by the Welfare Support Team. 

The Revenue and Benefits Service Manager advised Members about the consultation survey. He explained that all affected claimants, support groups and partner organisations had been written to and asked to complete the survey.  Seven thousand five hundred letters had been sent and one hundred responses had been received.  He agreed to circulate the responses to Members. 

In response to the recommendation that the Committee supported Option 4 of the report, the Leader of the Liberal Democrat Group moved that Option 1 should be adopted with a review in 12 months time following the introduction of Universal Credit.  This movement was lost.

Agreed:

that Option 4 of the report be endorsed with the amendment that the Welfare Task and Finish Group would consider the use of DHP to support claimants adversely affected by the changes to the Council Tax Support Scheme and a review to be undertaken 12 months after the introduction of Universal Credit.

The Leader of the Liberal Democrat Group sought advice from the Solicitor on the submission of a Minority Report.  The Solicitor advised that a Minority Report would not be appropriate as Cabinet had not specifically requested the Scrutiny Committee to examine the issue, but had included Scrutiny as part of a wider consultation process.  Also, as the Chairman of the Performance Management Scrutiny Committee would be giving a verbal report to Cabinet later that day, the Leader of the Liberal Democrat Group could also give a verbal report to Cabinet.