Issue - meetings

To consider a recommendation made by the Finance and Economic Overview & Scrutiny Committee that the draft Discretionary Council Tax Payment Policy (2024/2025) be formally approved, along with the budget of £30,000.

Purpose of report

This report provided an update to Cabinet on Discretionary Council Tax Payment (DCTP) expenditure, and requested that Cabinet approved the Discretionary Council Tax Payment Policy for 2024/25.

Decision

That Cabinet:

1.    Recommended to Council the continuation of the £30,000 Discretionary Council Tax Payment fund for 2024/2025.

2.    Approved the Policy for the administration of Discretionary Council Tax Payments for 2024/2025.

Alternative options considered and rejected

To not approve the Policy or continue the Discretionary Funding

Reasons for decision

The Council had a clear commitment in its Corporate Plan 2020-2023 to healthy and strong communities and being a high performing council. This report, and the support provided through the Council’s Discretionary Council Tax Payment Scheme, delivered these priorities.

Each year, as part of the Council Tax Support Scheme consultation, the Council had agreed to provide £30,000 funding for this scheme. This would be a direct cost to the General Fund.

The Discretionary Council Tax Payment (DCTP) policy for 2024/25 would be put in place to ensure effective financial support was provided to eligible recipients.

A DCTP was available to anyone in receipt of Council Tax Support who had a shortfallbetween the weekly amount awarded and their Council Tax liability.

In addition, the DCTP scheme provided additional funding to help those with a Council Tax liability who were experiencing exceptional hardship in situations where Council Tax Support did not cover all of their council tax liability. To qualify for consideration for assistance under this scheme the customer must already be in receipt of some Council Tax Support.

Since Covid, Government had provided a number of additional top-ups of support for those in receipt of Council Tax (beyond Council Tax Support). As a result, this had had an impact on the amount of funding remaining, which had been rolled over into the forthcoming financial years.

This ongoing top-up support was currently in place to 31 March 2024, and it was not known whether there would be a new top-up announced. It was therefore important the Council continued to approve the roll-over of the underspend as this would provide additional budget in a year in which other government top-up would not be available.

Discretionary Council Tax Payment Policy

The administration and payment of DCTP was at the discretion of each local authority. South Kesteven District Council had a DCT Policy which set out eligibility for the scheme and the application process.

The aim of the policy was to enable the most vulnerable residents, who could not accessany other income, to sustain their home and health. Discretionary payments could be applied for independently but were often considered as part of the application process for Discretionary Housing Payments (support for shortfall between Housing Benefit / Universal Credit award and eligible rent). Officers were aware of the discretionary payments and actively encouraged customers to apply where eligibility criteria were met.

There was a need for proactive work and support due to the ongoing impacts of cost of living on residents. However, it  ...  view the full minutes text for item 63