Issue - meetings

Purpose: to recommend to Council to adopt and implement a new Council Tax Reduction Scheme for the financial year 2013/14 (report attached)

Cabinet considered the head of finance’s report requesting the adoption of a new council tax reduction scheme for 2013/14.  The Welfare Reform Act 2012 abolished the council tax benefit scheme and required councils to introduce local council tax reduction schemes.  The Local Government Finance Act 2012 set the rules surrounding the new scheme, which included:

• Introducing awards of discounts rather than benefits
• Protecting pensioners so they were no worse off under a new scheme
• Protecting vulnerable people
• Introducing new funding arrangements where 100 per cent subsidy would be paid to councils administering the scheme—the grant would be based on estimated expenditure for 2013/14 less ten per cent
• Consulting the public about a new scheme
• Adopting the government’s default scheme if the council could not agree a new scheme

Cabinet noted that officers had worked with the other councils in Oxfordshire to introduce a new scheme to help those on low incomes to meet their council tax liability.  Following discussions with leaders across the county it was agreed that the new scheme for 2013/14 should replicate the current council tax benefit scheme.  The new scheme ensured that there would be no disadvantage to the low-paid and the scheme would not act as a disincentive to work.  The scheme, along with the operational costs and effects on fraudulent activity, would be closely monitored during 2013/14 and would inform the development of a new scheme for 2014/15.  Cabinet supported this approach. 

RECOMMENDED: To Council to:

(a)               adopt the Council Tax Reduction Scheme for 2013/14 outlined in paragraph 8 of the report;

(a)               authorise the head of finance to finalise the scheme for 2013/14; and

(b)               encourage Oxfordshire local authorities to continue to work together to develop and introduce a uniform Council Tax Reduction Scheme for 2014/15.