The Cabinet considered the report of the Heads of Resident Services and Finance, and the Cabinet Member for Finance. The Cabinet Member for Finance introduced the report and highlighted the paragraph numbering error on page 4 where 2.18 should be numbered 3.2, and a capital letter to start at paragraph 4.1.  He advised that as part of the Welfare Reform Act 2012, Council Tax Benefit had been replaced by a localised scheme, Council Tax Support, which came into effect in April 2013.  During the last financial year the scheme had operated a reduction of 15% in Council Tax Support to working age claimants.  He proposed that the Council Tax Support scheme for 2016/17 was kept the same as 2015/16 in order to continue to reduce the amount of Council Tax Support to working age claimants by 15%.

The Cabinet Member for Localism, Sport, Culture and Heritage supported the proposal but sought clarification on whether the 15% had increased the levels of Council Tax collection; what the risk was if the proposal was not supported; and what evidence there was that the current proposals had increased the levels of Council Tax collection?

The Revenues and Benefits Manager – Technical and Financial advised that when the charge was increased by 8.5% to 15%, the collection rate had also increased.  She advised that claimants were now used to paying, and council tax staff encouraged claimants by setting up suitable arrangements to pay.  She further advised that by the end of October 2015, levels of collection had increased by 4% from end of October 2014, and that if the charge was lowered, she did not think the amount would change significantly.

A Member referred to paragraph 3.1 on page 4 of the report and sought confirmation that the Council was on track to collect the similar percentage to 2014/15, and what internal incentives there were to seek a higher return?

The Revenues and Benefits Manager – Technical and Financial stated that staff were working hard to improve collection rates; they telephoned claimants that did not keep up with their arrangements, the figures were monitored weekly to see if they had increased or decreased and, apart from the initial weeks, the rate had increased week-on-week.  She was confident of matching the 82% collection rate of the previous year, but was unable to predict up to March 2016 with certainty.  The Revenues and Benefits Manager – Technical and Financial also advised that the current figure was 15-20% below what the final collection rate would be as many people paid at the end of the year, and benefits staff could be drafted in to assist with collection at this time if necessary.

The Chairman welcomed the questions and discussions on the subject and considered that the amount collected was more than expected.  He confirmed that the recommendation in the report would be a recommendation to Full Council.

RECOMMENDED:

(1)  That the Council Tax Support scheme for 2016/17 be kept the same as 2015/16, so that Council Tax Support continues to be reduced by 15%.