Agenda item

            That the report be approved and endorsed by the committee

The Interim Manager Revenues & Benefits circulated an updated version of the report which contained Appendices 3 and 4.  She apologised for the unavoidable late submission of the papers and then presented the report which explained the change from Council Tax Benefit to the Council Tax Reduction Scheme, the implications and the requirement to adopt the scheme by 31 January 2013.  The key elements of the report were as follows:

• The scheme would come into operation on 1 April 2013.

• The Welsh Government took the decision to establish a national framework for the provision of Council Tax Support in Wales in order to avoid any regional differences in eligibility.

• Although a national scheme had been approved, there was limited discretion given to the Council to apply discretionary elements that were more generous than the national scheme.

• Discretionary elements included extension to the standard period of 4 weeks during which the council tax reduction would continue after a claimant started work.

• An increase in the amount of War Disablement Pensions and War Widows Pensions which was to be disregarded when calculating the income of the claimant.

• The ability to permit claims for council tax reduction at offices other than County Hall/County Council buildings.

• The backdating of the award of council tax reduction for longer than the new standard of 3 months where a claim had been submitted late.

• Flintshire County Council was obliged to carry out consultation on the adoption of the scheme even though the provisions were set out by the Welsh Government. 

• The Consultation exercise was carried out between 17 December 2012 and 14 January 2013 and all 13,000 customers currently in receipt of council tax benefit received a consultation letter and response form.  18 forms were returned, 16 of which were on line and one organisation responded.  Approximately 300 customers contacted the Council by telephone as a result of the letter to discuss their personal circumstances.

• An Equality Impact Assessment had been carried out, the results of which could be found on Appendix 4 to the report. It gave a profile of the clients in receipt of council tax benefit and how the council could support them.

• A report would be submitted to Cabinet on 22 January and full council on 29 January.

            The Interim Manager Revenues & Benefits explained that from 1 April 2013 the Council through devolved powers to Wales Government  would take over responsibility from Department for Work and Pensions for administering the new scheme.  The amount of funding available for the scheme would be fixed at £8.7 million, which represented 90% of the costs of the present scheme.  From 1 April 2013, claimants would receive a maximum 90% rebate of their council tax liability and would be expected to contribute at least  10% of the cost themselves.

                        The Chief Executive said that it should be recognised how quickly this new legislation was presented to the Council and the short time scale for implementation.  He reminded the committee that consultation had been on the discretionary elements.

                        The Leader of the Council said that this scheme was part of the welfare cuts driven by the UK Treasury which would transfer responsibility for collection of council tax to the local authorities.  He said that if the scheme was not adopted by 31 January, benefit payments could be delayed. He emphasised that there would be a huge impact on communities and the Council and that the Council’s Welfare Reform Board would offer assistance as best they could.  He reported that the Welsh Local Government Association (WLGA) had been in talks with the Welsh Government about the level of the charge, quoted as 10%  and that this would be under review.  If there was to be a sudden spike in the amount of council tax benefit claimants, this could exceed the grant funding available and the council tax payers would have to shoulder the extra costs. 

                        The Head of Finance thanked the Interim Manager Revenues & Benefits for her report and said that comments from the committee would be fed back to Cabinet and Council. She apologised for the lateness of the updated report and said that data for the updated report had only been received the previous day. The 10% of revenue expected from council tax benefit claimants was included in the budget 2013/14.

                        Councillor A. Woolley said that the difficulty lay in not knowing the full impact of the new regulations.  He said that concern should be recorded at the way councils were forced into it without full consultation and that the impact be carefully monitored.  He said that that the increased workload of FCC staff should not be underestimated.

                        The Leader of the Council said that the Revenues and Benefits, Welfare Rights and Housing Teams had spent last 4 months looking at the impact of the reform and that officers has worked hard to identify and contact persons who would be hardest hit.  A significant number of people had been contacted to see if they needed money advice and some had already been helped. He stressed that it was essential that people sought help as early as possible, to avoid debt management issues.

                        Councillor S. Jones concurred with Councillor A. Woolley and the Leader of the Council and said that the regulations would have a devastating effect on residents and the council.  She asked about financial arrangements should the level of claims exceed the £8.7 million grant.  The Interim Manager Revenues & Benefits said that this potentially would have to be paid by Flintshire County Council. 

                        Councillor P.G. Heesom commended the council for the work that had already been done to assess the impact of the change in regulations to residents and the council.  He asked about the contributory rate for 2014/15 and if it would remain at 10%.  The Leader of the Council said that the level of contribution was set by the Welsh Government and that the WLGA had lobbied for the claimant contribution rate to be 10%.  The Chief Executive said that the issue of Council Tax was a devolved matter and that the 10% contribution from all council tax benefit claimants was better than the original prediction of 20%.

                        Councillor J. Johnson asked for an estimation of the average 10% contribution.  The Interim Manager Revenues & Benefits said that on a Band D property valued at £1,100 per year, this would equate to £100 per year.

                        Councillor R.G.  Hampson asked if staffing had increased in the Welfare Rights Unit to address the increase in workload. Councillor M. Bateman asked if Flintshire had been allocated additional funding to set up the scheme and voiced her concern at possible extra burdens on council tax payers.  The Leader of the Council in response said that the WLGA had secured £4.6 million for the 22 Welsh authorities to offset the costs of implementation and that 2 extra officers had been recruited to the Welfare Reform Team. 

                        Councillor P. G. Heesom asked if the Welsh Government would monitor variations in customer demand.  The Chief Executive said that the situation would be under review from the Welsh Government.

                        Councillor R. Lloyd asked if the single occupancy reduction would remain.  The Interim Manager Revenues & Benefits confirmed that this would continue.

                        Councillor R. G. Hampson asked if council tax benefit and housing benefit would now be paid directly to the resident.  The Interim Manager Revenues & Benefits said that the Council Tax Reduction Scheme would still be credited to the Council Tax Account as it does now. Housing Benefit rules would remain the same but from October 2013 certain claims under Universal Credit from would be paid directly to the recipient.

                        Councillor P. G. Heesom asked if North Wales and South Wales authorities were treated equitably in the grant allocation process.  The Leader said that the money was allocated on a formula basis and that there were no issues around this.

            RESOLVED:

            That the report be approved and endorsed by the committee