1. Localisation of Council Tax Support

2. Council Tax Support Purpose of the Report  Remind members of the background to the national abolition of Council Tax Benefit and proposed introduction of Localised Council Tax Support from April 2013  Outline the key strategic choices that may be available to the Council  Suggest a set of guiding principles that members may wish to consider  Ask the Committee to identify a preferred scheme (s) so that a consultation process can be undertaken in line with statutory requirements

3. Council Tax Support

4. IT ISIT IS NOT Council Tax Benefit being replaced by Council Tax Support Universal Credit Reduced Room Rate Benefit Cap

5. Council Tax Support Govt. KBC Applicant Government Scheme 100% reimbursement on actuals Council Tax Benefit - now

6. Council Tax Support Council Tax Benefit - proposed Govt. KBC Applicant “Local” Scheme National elements 85% reimbursement of historic cost

7. Council Tax Support Impact Impact on Categories of Claimants CategorySchemes from April 2013 PensionersCouncil’s must give the same level of benefits to pensioners (national policy requirement)45% ‘Vulnerable Groups’In theory a Local Choice but must give regard to vulnerable groups when designing a local scheme. In practice, most of this group will also be protected. 38%+/-? OthersLocal Choice17%

8. Council Tax Support Caseload

9. Council Tax Support Current Funding YearCTB subsidy Expenditure (£000) NumbersCtax Inc % 2007/08 4,1636314 2008/09 4,60266846% 2009/10 5,419759914% 2010/11 5,85078964% 2011/12 5,95881403% 2012/13 6,04983503%

10. Council Tax Support Funding Challenge £880,000 £129,000 £120,000 £631,000

11. Council Tax Support Customer Base

12. Council Tax Support Potential Options Option No Option 12341234 Continue with the current scheme (i.e. Do nothing approach) Adjust Council Tax Discounts and Exemptions Implement a new scheme (to fit the reduced national funding) Implement a new scheme and adjust discounts and exemptions (hybrid of options 2 and 3)

13. Council Tax Support Budget Containment Strategy “ 1.Where specific grant which funds a specific service is withdrawn, the service stops”. “ 2.Where grant funding reduces, which Kettering Borough Council passports through to another organisation, the reduced sum continues to be passported, providing the end recipient organisation feels it can still provide a value-added service at that funding point”. “ 3.The Council should not substitute itself as a provider / funder of services when another public provider cuts such a service”.

14. Council Tax Support Option 3 Option 2 Option 3 Option 3 Option 2 Option 2 Yr 1Yr 2Yr 3 Estimated Funding Gap £129,000

15. July 12 Aug 12 Sept 12 Oct 12 Nov 12Dec 12Jan 13Feb 13 Proposed scheme with preferred option agreed with members Written consultation with preceptors Public Consultation November Executive - Proposed approval of the scheme December Full Council - Scheme ratification Communication Plan Notification of Tax base and test IT changes 31 st Jan - Deadline for adopting scheme Council Tax Support Timescale

16. Council Tax Support Considerations  Timescales - Local schemes must be approved by 31st January 2012 at the very latest. In reality, they need to be approved significantly before this to facilitate paperwork and processes to be dealt with.  Consultation – Local Authorities must undertake statutory consultation with major preceptors and stakeholders. This will normally take between 8 and 12 weeks to complete.  Software – The software that run IT systems will need to be amended and rigorously tested.  Training – staff will need to be properly trained to administer the new system effectively.

17. Council Tax Support Recommendations  Note the contents of the report  Endorse the guiding principles contained in section 4.11  Agree that the preferred option for consultation is Option 4 – with option 2 being the primary source of funding (ie, all elements pursued) supported by elements of option 3.  Approve the consultation approach as set out in the Appendices to this Report.