Agenda item

[Report of the Director of Finance.  To be introduced by the Cabinet Member for Finance and Transformation]

This report seeks approval to publicly consult on the options to improve the customer experience and administration of CTRS

The Cabinet Member for Customer Service, Welfare and the Public Realm introduced the report which summarised the process and content of proposed potential changes to the administration and policy of the Haringey Council Tax Reduction Scheme to be introduced in 2022/2023. The report also set out a series of options to amend the current scheme, with a preferred option recommended, and the timescales for consultation processes to be undertaken should any changes be sought.  The proposed changes would simplify Council Tax documents and make the process more transparent. 

The Cabinet Member responded to questions from Councillor Barnes:

-           The service had been reviewing letters sent out to residents and were looking to take on board a range of languages to translate documents into.  A suggestion was to include a small box at the top of every letter with a short, translated summary in the five most commonly spoken languages in the Borough, with an offer of a full translation of the letter.

RESOLVED that Cabinet

1.         Agree to consult on the following changes to the existing Council Tax Reduction Scheme:

i)          Simplifying the claims process by adding a new channel for residents on Universal Credit to claim council tax reduction automatically as set out in paragraph 4.3.1

ii)         Stabilising entitlement for residents by simplifying what happens when a resident’s income changes by a small amount during the financial year as set out in paragraph 4.3.2  

iii)        Simplifying the scheme by changing the way that council tax support can be backdated to allow more time for residents to claimas set out in paragraph 4.3.3

iv)        Simplifying the scheme through improved transparency by publishing a revised statement of the scheme written in plain English as set out in paragraph 6.17

2.         Note that, following consultation with the Greater London Authority (“GLA”) and having considered the GLA’s response:

i)          A draft CTRS will be published;

ii)         A consultation on that draft CTRS will be carried out with persons likely to have an interest in its operation; and

iii)        The findings of the consultation and an Equalities Impact Assessment will inform the final CTRS, which will be put to members to consider at full Council in December 2021.

3.         Note that care leavers are especially vulnerable to debt and the Council will review and improve the communication of the existing relief scheme and review, simplify, and improve the claim process and its administration.

Reasons for decision

The Council Tax Reduction Scheme (CTRS) is a way the Council can redistribute the financial burden on Council Taxpayers and provide additional support to those in need.

It is important that the CTRS is simple and easy to claim to maximise uptake and reduce the burden on our residents. A scheme that is easy to access can help residents to minimise debt, assist household budgeting, and increase the ability to pay council tax. 

The proposed amendments to the rules for working age claimants would have the following benefits:

Simplifying the claims process. The proposed change is to add an additional way for residents to claim council tax support automatically when they start receiving Universal Credit. This would have a positive effect because it would simplify claiming for most residents and reduce the difficulty and anxiety for residents who claim Universal Credit. It would also make sure as many people as possible claim the support to which they are entitled.

Stabilising entitlement for residents. The proposed change is to simplify what happens when a resident’s income changes by a small amount. This would have a positive effect because constant changes in a council tax bill can make household budgeting difficult for residents as well as imposing a significant and costly administrative burden on the council. As explained in paragraph 6.12 to 6.14, most residents would receive the same support as now with 6% receiving a slightly smaller amount of support and 6% receiving a slightly higher amount of support. On balance, it is considered that the significant benefit to residents of making the scheme more accessible and reducing the number of bills merits these changes. 

Simplifying the scheme. The main proposed change is to extend the period an award of CTRS can be backdated from six months to twelve months. It is also proposed to simplify the scheme by publishing a revised version written in plain English. The current regulations are complex and run to 214 pages. Simplifying the language so that it is easier to understand for residents will help to improve transparency and uptake.

These changes predominantly relate to ways to simplify the administration of the scheme and maximise uptake. The Council is not seeking to reduce the generosity of the current scheme or to reduce the maximum entitlement awarded since 2019.

The affordability to the Council of the CTRS scheme continues to be an important consideration, balanced with the need to support as many residents as possible. The changes will reduce the number of transactions that the Council must administer.

The Council is obliged to consider whether to revise or replace its CTRS each year. However, it is not obliged to revise or replace it. If any revision or replacement is to be made, the Council must follow the consultation process set out in the legislation and the decision must be made by Full Council. To give the Council sufficient time to implement any changes, Full Council should formally agree the proposals in December.

Alternative options considered

There are a range of ways that the Council could alter its CTRS. The Council updated its CTRS policy in 2019/2020 which included providing more financial support to working age claimants with children. The Council is not seeking to reduce the generosity of the current scheme or to reduce the maximum entitlement awarded since 2019. Instead, the Council has explored a variety of options to make the scheme simpler to administer and to assist in reaching everyone who is entitled to support.

No change to the existing CTRS

This is not recommended because amending the scheme will help residents to access the support to which they are entitled, improve their experience, and reduce the administrative burden on the Council.

Do not simplify the claims process.

This is not recommended because simplifying the claims process to introduce an automatic claims channel for those on Universal Credit will improve uptake of council tax support and improve the experience for residents. It will also improve access to the scheme for those for whom, for a variety of reasons, such as digital exclusion or language barriers, may struggle to access it.

Do not simplify the scheme by reducing backdating restrictions

It would be possible to not simplify the scheme by changing backdating rules. However, reducing backdating restrictions is likely to improve resident’s experiences, reduce complaints and appeals, and remove barriers to the take-up of the scheme.