Agenda item

Report number HOF232 by the Head of Finance.                          (Enclosure)

The Benefits Manager presented report number HOF232 by the Head of Finance on the Discretionary Council Tax Payment Policy. He explained that under current arrangements the council had a discretionary housing payment policy for use in respect of rents and council tax. From 1 April 2013 council tax help would no longer be available under this policy.

As part of its budget for 2013/14, Council agreed a local fund to help with cases of extreme hardship that may arise following the introduction of the local Council Tax Support scheme. The PDG was asked to consider the proposed policy within which Benefits Officers would assess individual cases for eligibility for a Discretionary Council Tax Payment.

The proposed scheme was designed to meet short-term financial difficulties for a defined period. At the end of the period an individual could reapply for support. To qualify for the scheme the customer would have to be in receipt of some Council Tax Support. The claimant or their partner was also required to be in work or taking proactive steps to overcome worklessness.

Councillors considered how an applicant might prove they were actively seeking employment. Members noted that in order to claim Job Seekers Allowance applicants were required to sign in every two weeks and demonstrate they were actively seeking work or developing skills to help them gain employment. Officers advised that claiming job seekers allowance would not preclude an individual from the scheme and explained that when contribution based jobseekers allowance ceased at the end of a 6-month period, the applicant would need to apply for means tested jobseeker’s allowance. This was based on household income; if their partner was earning a wage, household income could exceed the allowance. The conditions of entitlement would suggest that this was the type of household the scheme was designed to assist.

Any awards through the scheme would only be payable against current liability, not past debts to individuals who engaged with the council, taking proactive steps to resolve financial difficulties. Customers would be required to submit an application form giving information on their financial circumstances, providing a greater level of detail than an application through the housing benefits system. Consideration would be given to an applicant’s commitments, outgoings and what was essential to their circumstances. Applicants could provide information face-to-face or via telephone and officers would note this on their form. While there was no legal requirement for a form to be filled in, Councillors agreed that the applicant should be asked to sign to say that any information recorded by an officer is correct.

A customer who did not agree with a decision could have their application reviewed by a manager. There was no formal right of appeal as the award was discretionary. When a customer’s circumstances changed, any award would be reduced down and the Council would have power to recover any excess.

One Councillor expressed concerns that the level of budget would not be sufficient to meet demands. Other Councillors highlighted the support the district Council was providing, topping up the payment of parish precept on behalf of recipients in receipt of council tax support.

Application forms for the fund would be available online and at the district Council’s area offices. The Citizen’s Advice Bureau would also be informed to help them advise their customers. Officers stated that applications for the funding, which would become available on 1 April 2013, were already being received.