To consider any requests received in accordance with Part 4, Section B, paragraph 29 of the Council’s constitution.
Minutes:
The Committee received a deputation from Rev. Paul Nicholson in relation Cabinet’s decision on 14th November, to approve to Full Council the implementation of the 2018/19 council tax reduction scheme (CTRS). In particular, Rev. Nicholson raised concerns that:
a. Under the 2018/19 council tax reduction scheme, working age claimants of council tax support continued to be capped at 80.2% of council tax liability. Rev. Nicholson set out that since April 2013, 264 of 326 local authorities in England had charged a reduced rate of council tax of between 8.5% and 30% against state benefits.
b. The level of benefits available to working age claimants had been steadily eroded over recent years. The employment benefit payment for a single adult of £71.10 per week was insufficient and having to pay, even a reduced rate of council tax was an additional financial burden that pushed benefit claimants even further into arrears. The Joseph Rowntree Foundation, had set the minimum weekly income standard at £91.80.
c. Concerns were raised that once residents became in arrears, the Council instigated debt proceedings and the level of debt would then be compounded by court costs. Concerns were also raised with the use of bailiffs, who sought to secure payment against social security payments.
d. Given the 7 year difference in life expectancy between Northumberland Park and some of the most affluent wards in the borough, Rev. Nicholson emphasised that there were a number of key impacts on health related to low incomes. These included; poor diet leading to diabetes and cardio-vascular disease; cold homes leading to respiratory and cardio-vascular disease; poor nutrition leading to low birth weights; indirect health impacts such as increased levels of stress and depression.
e. In order to support putting the health and wellbeing of all its residents first, Rev. Nicholson requested that: The additional liability over and above the statutory minimum of 8.5% should be funded from the Council’s unearmarked financial reserves; the Council should stop taxing working age benefits from April 2019; withdraw the use of bailiffs; and remit the council tax of all working age claimants.
In response to the discussion of the deputation, the following points were noted:
a. In response to a request for clarification, Rev. Nicholson requested that the Committee should call-in the Cabinet’s decision. It was clarified that the original Cabinet decision was to approve the 2018/19 CTRS to Full Council for adoption and that this decision was subject to call-in, the deadline for which was 10 am on Friday 24th November. Full Council would then consider the scheme at its meeting on 4th December.
b. In response to a question, officers advised that the cost of funding the council tax reduction scheme last year was around £19m for all categories of exemption. It was estimated that the cost of further reducing the liability for working age benefit claimants would be around £5m.
c. The Committee considered that there were other boroughs who did not use bailiffs.
d. The Committee invited Rev. Nicholson to give a deputation to Full Council on 4th December, as they would be taking the final decision on the CTRS.
e. The Committee suggested that a piece of work should be undertaken in future to look at the enforcement of council tax debt and the use of bailiffs to collect arrears from benefit claimants. (Action: Clerk).
f. The Committee also agreed that it would note the points raised during the deputation and use them to inform a representation to Full Council; specifically around concerns with the method of enforcement and a reminder that there were other options available in terms of the level of reduction available and how this could be funded. (Action: OSC Members).
g. Rev. Nicholson advised the Committee that he thought the key emphasis should be around the impact of low income on health and wellbeing.