Agenda item

The Benefits Manager will give a presentation to update members in respect of the localisation of council tax benefit.                                                                                (Enclosure)

The Benefits Manager gave a brief presentation to the PDG which updated them on the introduction of a local council tax benefit support scheme. He reminded members that the Council was required to develop and introduce its own council tax support scheme following the abolition of council tax benefit. The local scheme would need to take account of a 10% reduction in funding from government.

A draft scheme was developed based on the following principles:

·         Most people (of working age) should pay something towards their council tax

·         Those with disabilities should be protected from any reduction in support

·         Those with caring responsibilities should be protected from any reduction in support

·         War pensioners should be protected from any reduction in support

·         The scheme should make work pay

·         The scheme should be available to all those who pay council tax, regardless of the size of property in which they live

·         Second adults living in the property should contribute

·         Benefits should not be paid to those with capital above set limits

·         Benefits can be paid based on the income of a second adult with a low income

·         Thos with relatively more income should pay more than those with less income

At a meeting on 20 August 2012 the Cabinet agreed a scheme that would be consulted on. Initial consultation was undertaken with the major precepting authorities (Lincolnshire County Council and Lincolnshire Police Authority) who both agreed with the principles of the proposed scheme and stated that they were unwilling to make further financial contribution to the scheme above the government grant that would be provided. Parish and town councils were not consulted as precepting authorities; there were no statutory requirement and the collection of parish precepts would not be affected.

An initial equality analysis was carried out on the proposed scheme before it was put out to public consultation for 8 weeks.

As part of public consultation on the scheme 5,219 postal surveys were issued from which 832 responses were returned (15.9%). Analysis of these showed broad agreement with the principles. A number of consultation events were held across the district; 6 people in total attended these sessions. A calculator was put onto the website which enabled people to compare their entitlement under the proposed scheme to council tax benefit. 353 people accessed a specific webpage and a number of people completed a web survey. A dedicated telephone helpline, which was used by 44 people, was available throughout the consultation period and would remain open for further queries until the scheme was in place.

Feedback from the public consultation informed a stage 2 equality analysis, which would form part of the report Cabinet would consider on 3 December 2012. The proposed scheme was scheduled to go to Council on 13 December 2012 for a decision. If the Council had not adopted a local scheme by 31 January 2013 it would fall to a default scheme which would mean that the Council would not achieve the required savings and would have to supplement the funding of the scheme.

Some concern was expressed about the impact of the proposed scheme on low income families and whether the consultation provided sufficient opportunity for members of the public to raise their concerns. Officers explained that the consultation questions were designed to allow comparison of responses across a range of demographic profiles and characteristics. Analysis identified common trends amongst different groups. The work recognised that the changes were part of wider welfare reform and would be reviewed on an ongoing basis.

In response to a question about whether there was a common scheme in Lincolnshire, councillors were advised that there were local variations however the schemes were based on the same principles. In preparing the South Kesteven Scheme, officers took part in Lincolnshire-wide and regional workshops and forums.