The Chairman welcomed the Cabinet Member for Finance and Performance and the Revenue and Benefits Manager (Technical and Financial) to the meeting.

The Cabinet Member for Performance and Finance introduced the report which noted the outcome of the public consultation on proposed changes to the current Council Tax Support Scheme (CTS), and the scheme would be considered by Full Council before 31 January 2018.  The CTS scheme was introduced in April 2013.  The percentage collected in 2016/17 was 85% and for 2017/18, 50% had been collected to-date.  The Cabinet Member stated the importance of reducing overall costs of the scheme but ensuring it was done fairly, and that Officers had also looked at what other Kent districts were providing.

The Revenue and Benefits Manager reminded Members that in 2016/17, 11 options had been looked at, nine of which had been approved by the Council.  She drew attention to Table 3 on page 4 of the Committee report which set out six options to change CTS for 2018/19, she also drew attention to Appendix I of the Committee report which gave an overview of the responses from the public consultation on the six options. 

In response to questions from a Member, the Revenue and Benefits Manager stated that they were proposing to restrict the level of CTS to Band D and capital limit to £10,000.  She explained that 13,000 residents had been consulted and a good response had been received.  The Revenue and Benefits Manager referred to Option 2 and considered that implementing a limit to £10,000 would not affect collection rates.

The Cabinet Member for Finance and Performance stated that at Medway Council the amount of support for applicants was 35% but that this was the highest in Kent.  He considered that if the Council were to go above 25% this would lead to problems collecting Council Tax.

In response to queries from a Member, the Revenue and Benefits Manager reported that the 52.5% collected so far this year was down 0.2% from the same period last year.  She confirmed that anybody could respond to the consultation, not just claimants, and apart from the 13,000 people emailed, the consultation had also been added to Facebook, Twitter and included in The “Inside Swale” residents magazine.

A Member raised concern that reducing the level of support to 75% would make it difficult for people to manage financially.  He was also concerned that most of those who had responded to the survey were not claimants and maybe of the view that people should not claim at all.  The member considered that the Council should maintain at 20% maximum level of support, and that the £16,000 capital limit.

In response to a query from a Member, the Revenue and Benefits Manager  reported that most Kent Authorities had set their level of support at 80% or higher, Medway was 65% and Shepway was 75%.

A Member noted that it stated that 48% of people agreed this option on page 1 of the Appendix, however on page 12 it stated that 71.7% agreed.

The Revenue and Benefits Manager agreed to amend Appendix I and circulate to the Committee a revised schedule.

Councillor Mike Henderson moved the following motion:  That the maximum level of support for working age applicants be kept at 80%.  This was seconded by Councillor Mike Baldock.

Members considered the proposals and raised points which included: we had been given a clear steer by those consulted to reduced to 75%; need to consider the increase to the minimum wage and personal tax allowance benefits; we had an obligation to all who use our services, not just those that claim CTS; and would support retention at 80% if officers were confident we could still collect council tax.

The Revenue and Benefits Manager reminded Members that residents experiencing financial difficulties could claim payment from the Hardship Scheme.

The Cabinet Member for Safer Families and Communities stated that the Council had a statutory duty to undertake a public consultation on the CTS and was obliged to listen to the results of that consultation.  If the Council did not have regard to the outcome of the consultation then it could be falling foul of the rules.

On being put to the vote the motion was lost.

Councillor Mike Henderson moved the following motion: That the capital limit remain at £16,000.  This was seconded by Councillor Mike Baldock.

Members considered the proposal and made the following points: we should encourage people to save where they can, we all need savings as a matter of principle not practicality; and concern no ethnic minorities in favour and low response rate from this group.

On being put to the vote the motion was lost.

Councillor Mike Henderson moved the following motion: That the maximum level of support for working age applicants be reduced to 77.5%.  This was seconded by Councillor Mike Baldock.  On being put to the vote the motion was agreed.

The Chairman thanked the Cabinet Member for Finance and Performance and Revenue and Benefits Manager for attending the meeting.

Recommendation to Cabinet:

(1)  That the maximum level of support for working age applicants be reduced to 77.5%.