Issue - meetings

The Cabinet Member for Finance reported on proposed changes to the London Borough of Barking and Dagenham Council Tax Support Scheme (CTSS).

The Cabinet Member explained that the Council had held a high cap in respect of its CTSS in the past in order to protect the most vulnerable in the local community.  However, the unprecedented financial challenge being faced by the Council meant that all areas of income and expenditure had to be assessed and the difficult decision had been taken to reduce certain protections, albeit that some key protections would be retained and a discretionary exceptional hardship fund would be established to help mitigate the impact of the changes on those affected. 

The Cabinet Member advised on some of the potential implications for the Council of the proposed changes, which included lower collection rates, and that all those affected by the proposals would be contacted direct as part of the consultation arrangements.  The Cabinet Member also commented that the Council may need to look at ending the six-year freeze of Council Tax levels in view of the current financial situation.

Cabinet resolved to:

(i)  Agree to issue for consultation the revised CTSS for 2015/16 for working aged residents, as set out at Appendix A to the report, which proposes:

(a)  Amending the maximum liability level for assessment from 85% to 75%;

(b)  Withdrawing the Second Adult Rebate Scheme;

(c)  Reducing the capital threshold for working age to £6,000.

(d)  Retaining the following discretionary areas:

·  To continue to disregard War Widows and War Disablement income from income assessment for the scheme.

·  Continue the extended payment scheme in line with the Housing Benefit scheme.

(ii)  Delegate authority to the Chief Finance Officer, in consultation with the Cabinet Member for Finance, to carry out the required consultation and to make any appropriate amendments to the draft scheme arising from the consultation process, and to present the final draft scheme to the Assembly on 21 January 2015; and

(iii)  Recommend to the Assembly the creation of a discretionary exceptional hardship fund, initially of £50,000, from the additional income generated across all savings proposals related to Council Tax for 2015/16.