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 2025/26, 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 18 September 2024 and it was resolved to recommend to Council the continuation of the scheme into 2025/26.

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.  He added that the decision came at a cost in terms of lost council tax revenues in terms of working age households at a total cost of £67 million, with 38% of the 53,800 cases being pensioners who must remain protected.   Support of £25 million was given to pensioners and support to working age claimants was £42 million. 

Councillor Bell added that a review of the position in a years’ time would be required should no further funding from the new government be forthcoming, as the deficit would be £20 million in 2025/26, and a deficit of £60 million over the MTFP period.  The Council would also need to reflect on the administrative burden regarding universal credit.  Unless further funding was received from government this would need to be closely monitored and could be the last year this could be offered.

In Seconding the report Councillor A Shield, Portfolio Holder for Equality and Inclusion thanked Councillor Bell and the officers who had supported vulnerable people during this last year.  He was pleased to note that new claims were being processed within 15 days and changes in circumstances within 16 days which was well within the target.  Councillor Shield said that the Council should be proud that the scheme had been retained but the increasing financial pressures continued need to make savings meant that the scheme would need to be closely monitored going forward.

Councillor M Wilkes commented on the difficult financial circumstances being experienced but that it was important to protect the most vulnerable and still provide quality services.  He urged the government to provide further funding for the scheme to continue.

Resolved:

That the recommendations in the report be approved.