Agenda item

The Council considered a report of the Corporate Director of Resources which sought approval for the continuation of the current Local Council Tax Reduction Scheme (LCTRS) for a further year into 2024/25, which would continue the protection afforded to all claimants in line with what their entitlement would have been under the former Council Tax Benefit system (for copy see file of Minutes)

The proposals were considered by Cabinet at their meeting on 12 July 2023 and it was resolved to recommend to Council the continuation of the scheme into 2024/25.

The Corporate Director of Resources informed Council that the scheme would continue as it was, with one procedural change for the additional earnings disregard for those Working Age claimants receiving Universal Credit.  This would see them qualifying for an additional income disregard they had previously not received which would increase the cost of the scheme by £115,000 and provide this additional level of support to over 600 claimants, maintaining the scheme in line with the spirit of the national Council Tax Benefit system.

In Moving the report Councill R Bell, Deputy Leader and Portfolio Holder for Finance informed Council that Durham County Council remained the only council in the north east to have a scheme that continued to provide support equal to that which was available under the old Council Tax Benefit scheme.

However, the decision came at a cost in terms of lost council tax revenues in terms of working age households compared to virtually every other council in the country.   However, on balance, it was the right decision for next year, particularly in light of the current squeeze on households income and budgets.  The cost of the Local Council Tax Reduction Scheme was around £63.5 million, with 38% of the 54,000 cases being pensioners who must be protected in any event.

As always, the Scheme would be reviewed in a year’s time and the administrative burden being created through multiple changes in circumstances for those households on Universal Credit would be carefully monitored.

In Seconding the report Councillor A Shield, Portfolio Holder for Equality and Inclusion thanked officers and Councillor Bell for the report and paid tribute to the staff who administered the scheme and who had worked tirelessly to support vulnerable people during the last year.

All members, past and present, could be proud that Durham County Council had been able to retain a Local Council Tax Reduction Scheme that retained support to vulnerable and disadvantaged households equal to that which was available under the old Council Tax Benefit scheme.  Durham was one of only of only a handful of councils across the country and the only authority in the north east which continued to retain a Local Council Tax Reduction Scheme at the same level as was the case under the former national Council Tax Benefit system.

Councillor Shield welcomed the amendments to the additional income disregard procedures that were contained in the proposed scheme next year. This would help maintain support in line with the spirit of the national Council Tax Benefit system.

Councillor R Crute informed Council that he was pleased to endorse the extension of the Local Council Tax Reduction Scheme but sought an assurance that the proposed change to the additional earnings disregard rule for those Working Age Customers in receipt of Universal Credit would not have an adverse impact on Working Age Universal Credit claimants.  The Corporate Director of Resources replied that the proposed procedural change would benefit people and confirmed that it would not have an adverse effect on any claimant.

Resolved:

That the recommendations in the report be approved.