To consider the draft Council Tax Support Scheme including the associated Equalities Impact Assessment and the results from the consultation exercise.

Having previously considered the impact of welfare reform and the development of the Council Tax Support Scheme, the Board gave its final consideration to the proposed Scheme which was presented alongside the results of the consultation and the final Equalities Impact Assessment.

In response to questioning, the Board heard that the technical discounts which the Council could apply to Council Tax were being actively considered and any changes would be proposed when the Council Tax Base was considered by the Council.  It was suggested that this information could be modelled and provided alongside the Council Tax Support Scheme.

It was noted that the Equalities Impact Assessment had highlighted a disproportionate impact on households where a Band D restriction combined with the 75% limitation would apply and that, as a result, it was being recommended that this proposal be delayed for the first year of the Scheme to enable affected customers to consider alternative arrangements.

It was also noted that it was proposed that a Hardship Fund of £80,000 be established but that the details of how the Fund would operate were currently being developed.  Similarly a Vulnerability Policy was being developed that this had not been available for consideration alongside the Scheme.

In considering the reports before it and the answers received at its meeting, the Board made the following comments:

Given the potential impact on vulnerable people, as identified in the Equalities Impact Assessment, the Council should look to continue to provide a proactive system of managing the impact of the Council Tax Support Scheme rather than a reactive system.  The Overview and Scrutiny Board is concerned that there may not be the capacity within the relevant teams to respond to concerns identified via (amongst other things) the Council’s automated systems.  To mitigate these fears, the draft Hardship Scheme and Vulnerability Policy should be provided to the Council when it considers the Council Tax Support Scheme.

(Note:  During consideration of the item in Minute 38, Councillor Thomas (J) declared a non-pecuniary interest as a Director of Shekinah.)

To consider the draft Council Tax Support Scheme.

The Board has previously received briefing information about the introduction of local Council Tax Support Schemes and reduction of 10% in the expenditure allocated to the localised schemes.

At the meeting, the Board received a report which set out how the Council had worked with other Devon local authorities to establish a common framework for the new Scheme.  It was noted that the Council was proposing to adopt the existing Council Tax Benefit Scheme but, in order to make up the losses from the reduction of the grant subsidy, there would need to be changes to some elements of the scheme.

The proposals which had been subject to consultation were:

·         Limit the maximum level of support to 75% of their Council Tax Liability

·         Restrict the maximum level of support to a Band D charge

·         Withdraw the second adult rebate

·         Reduce the upper capital/savings limit from £16,000 to £6,000

The Council had consulted with residents, especially those who will be affected by the proposal, about the proposals through a survey which had been developed in conjunction with other Devon authorities.  The consultation had run for eight weeks until 1 October 2012 and had been available in a variety of forms.  A draft impact assessment had also been drafted which would be reviewed and updated following the consultation feedback and then used to inform the final recommendations which would be considered by the Council at its meeting in December 2012.

A range of issues were discussed at the meeting including the risk associated with collecting Council Tax from residents who had never previously had to pay, the impact on residents in a variety of circumstances and the methods used to consult with the public.

Resolved:  (i)  that the following findings of the Board be incorporated into its report:

1.         The Board recognises that the Government requirement to introduce a Local Council Tax Support Scheme (taken with other welfare reforms) is likely to have a substantial, adverse impact on the local economy and that awareness of this should be raised by a range of different means.

2.         In understanding the impact, it would be helpful for a view to be taken on the areas of Torbay in which the residents lived who would now, if the proposals were implemented, be required to meet at least 25% of their Council Tax liability.

3.         In addition, the specific impact that the introduction that the Local Council Tax Support Scheme will have on children in Torbay be considered and that the Strategic Welfare Group and the Child Poverty Commission be urged to continue to work together to mitigate this impact.

4.         The Board have every expectation that residents will pay their Council Tax and will recognise that the Council is being required to make these changes as a result of Government legislation.  Equally, the Board endorse the need for there to be robust procedures in place to collect Council Tax.  There will, however, be a need to assess the impact on the Collection Fund  ...  view the full minutes text for item 27