Issue - meetings

The Cabinet Member for Finance & Resources presented the report.

The report referred to the annual review of the Council’s working-age Council Tax Reduction (CTR) schemes to ensure they met residents’ needs and aligned with corporate objectives, particularly tackling poverty and inequality. The scheme supported over 9,000 of the city’s poorest and most vulnerable residents by linking council tax relief to ability to pay and offered additional benefits such as discounted leisure cards and discretionary reductions.

In response to questions the Cabinet Member and Benefits Manager, Revenues and Benefits, said the following:

      i.         Some Local Authorities had set a starting point of 60%, which was considered too onerous for the poorest households. This level often made payments unaffordable, which lead to indebtedness and associated stress and mental health issues. Furthermore, the cost of recovering such small debts was disproportionate and ineffective, making this approach neither practical nor appropriate. 

    ii.         Did not have the exact figures available but just under half the local authorities were now operating the same scheme as the Council. South Cambridgeshire District Council had recently completed its consultation and was considering a very similar scheme, confirming the Council’s model was setting a benchmark.

   iii.         It was important to revisit the budget allocation for taxi cards to determine if continuity of this support for eligible residents was possible. 

  iv.         Extend thanks to the Benefits Manager, who had led on this work and the amount of effort that had gone into it. Being able to say that the Council were the benchmark in this service was highly commendable. The way in which the benefits system operated was both efficient and effective, delivering real impact for those who needed it most.

Cabinet unanimously resolved to:

      i.         Universal Credit Scheme Uprating

To uprate the income bands and contribution levels within the Council Tax Reduction Scheme for households in receipt of Universal Credit in line with the annual percentage increase in the National Minimum Wage and better equalise earnings disregards.

    ii.         Non-Universal Credit Working-Age Scheme

To retain a Council Tax Reduction Scheme for working-age households not in receipt of Universal Credit, and to apply:

(a) Department for Work and Pensions applicable amounts and premiums where these continue to be published; or

(b) where such figures are unavailable, to uprate scheme allowances annually in accordance with the September Consumer Price Index (CPI).

   iii.         Council Tax Liability Basis

That 100% of the Council Tax liability shall continue to be used as the starting point for the calculation of entitlement under both Council Tax Reduction Schemes.

  iv.         Delegated Authority and Duration

To delegate authority to the Chief Finance Officer to carry out the annual review and uprating of the Council Tax Reduction Schemes in Page 149 Agenda Item 8 accordance with legislative changes and the uprating principles set out above; and to confirm that the Schemes shall remain in operation (subject to any such annual uprating) until 31 March 2029.

    v.         Where the household was on universal credit to retain a flat rate scheme for non-dependence of £8.36 for 2026/27 with an annual uprating in accordance with the September consumer price index and annually increased by September CIP thereafter. Non-depedents who received disability income or pension credit or a war pension or armed forces independent payment or were the charge payer and or partner have a disability or receive a carer’s benefit will not have a non-dependent deduction.