Issue - meetings

Report number HOF283 by the Head of Finance.                          (Enclosure)

In presenting report HOF283 the Head of Finance informed members that the current council tax support scheme had been running since 1 April 2013. The Council was required to develop its own scheme following a reduction in government grants. Within the framework for local schemes Councils were required to consider the vulnerability of particular claimants with pensioners being specifically highlighted by Government.

When new arrangements were implemented, the Council agreed a two year scheme. Report HOF283 considered the outturn for year 1, the scheme’s ability to meet its objectives and arrangements for year 3. Under the scheme claimants of working age had felt the most impact with an entitlement to a maximum level of support of 80% unless they were in one of the groups the Council agreed to protect. The scheme that was put in place incentivised a return to the work place.

The outturn position for year one came in below estimate with the same outcome projected for year two. The outturn position was attributed to a fall in the number of claimants who qualified for financial support and improvements in the economic climate.

The Head of Finance stated that there was no financial benefit to the Authority by introducing a larger liability; modelling of 70% collections rates for those customers affected by the scheme was proving accurate and any increase in the liability would adversely affect collection rates further. Members were informed that the Council would need to agree the scheme for year 3 by January 2015.

A majority of members agreed that current scheme was appropriate and should be extended into year three (2015/16).

Recommendation:

That no changes should be made to South Kesteven’s council tax support scheme in 2015/16.