Issue - meetings

Benefit and Local Taxation regulation changes

Meeting: 17/01/2013 - Full Council (Item 5)

5 FINAL APPROVAL OF HARINGEY COUNCIL TAX REDUCTION SCHEME pdf icon PDF 742 KB

Report of the Director of Corporate Resources

Additional documents:

Minutes:

The Mayor advised that an addendum to the report contained in the summons was circulated to Members on 16 January 2013 by email and also delivered late afternoon & evening.

 

The Mayor advised that in respect of the process to be followed the Director of Corporate Resources would introduce both reports, and respond to any points of clarification. The Mayor also advised that the Head of Revenues, Benefits and Customer Services and other officers were also in attendance to assist in any points of clarification or questions. The Mayor further advised that the Cabinet member for Finance and Carbon Reduction - Cllr Goldberg would speak, followed by an open discussion on this item.

 

The Mayor advised that at the conclusion of the discussion the Cabinet member for Finance and Carbon Reduction would give a concluding comment.

 

The Mayor then advised that at the conclusion of this he would then formally move the recommendations contained in the report before the meeting.

 

The Director of Corporate Resources gave an introduction to the two reports circulated regarding the final approval of the Haringey Council Tax reduction scheme, the first report being in the main pack and the supplementary report that had been dispatched subsequently. 

 

By way of background to the reports, the Director advised that Council tax benefit was being abolished and local authorities were being required to develop their own schemes by 31 January 2013, for 2013/14. The government was transferring the support to councils in 2013/14, with a reduction in funding of 10% and a requirement that the council’s own scheme must maintain the support to pensioners. Cabinet had considered various options for the scheme at its meeting on 10th July 2012 and agreed to consult on 4 proposals, as set out in paragraph 4.4 of the main report as follows:

 

-        To reduce payments to all working age claimants by an equal proportion in line with the reduction in government funding – estimated to be 20%.

-         Reduce savings and investment allowed to £10,000

-         Remove entitlement if less than £1

-         Amend the maximum backdating period.

 

The consultation responses were included in the report pack, and indicated a desire that some groups should be protected – in particular pensioners and the disabled. In response, the scheme being recommended to the Council recommended protecting claimants in receipt of particular benefits that recognise significant disability, as listed in the report at paragraph 6.6.6.

 

The Director advised that in October, the government had announced a transitional grant scheme of funding for one year, if the council implemented a scheme which limited the benefit reduction passed onto claimants to 8.5%. This was covered in the report at paragraph 4.5. The main report also covered recommended technical changes to the exemptions and discounts for council tax.

 

The supplementary report included a letter from Irwin Mitchell Solicitors (received on Friday 11th Jan) warning of a potential judicial review to the council tax reduction scheme, and a copy of the council’s response. The points made  ...  view the full minutes text for item 5