The Head of Revenues and Benefits introduced the report, as set out in the agenda pack, which recommended changes to the Council’s Council Tax Reduction Scheme effective from 1 April 2026, following the consultation approved in July 2025.  The results of the consultation were set out at Appendix II of the report.

The Chair invited Members to make comments, and these included:

·         Could the proposals lead to more unfairness within the system, especially those that were in employment and not on benefits but who were struggling financially, how would they be supported;

·         how confident were officers that the consultation process had been fair and thorough;

·         referred to paragraph 2.8 of the report and research by the Resolution Foundation and asked whether officers were monitoring this specifically to Swale?;

·         the Council’s Cost of Living meetings were an excellent forum that Members could attend to support the data on those on low levels of income;

·         how much would the Council lose from the offset of the provision for bad debts?;

·         the increase in the percentage of Council Tax would be offset by the provision for bad debts;

·         supported the proposals which would help to reduce the risk of homelessness for the poorest in our society; and

·         supported the proposals and considered the Council had to manage failures in previous years to manage benefits in line with inflation and also lack of government funding, and on balance considered the proposals were the best way to support those on the lowest incomes with the resources the Council had. 

In response, the Head of Revenues and Benefits reported that all working-age claimants had received the consultation either via email or through the post.  The Council’s Communications Team had ensured the consultation was on the Council’s website and on social media so those not on benefits had the opportunity to respond.  With regard to Resolution Foundation, the Council used Policy in Practice so its Welfare Officers could contact groups at ward level to establish where residents were living on low incomes. 

The Director of Resources advised that the provision for the support scheme formed part of the council tax base calculation and the Council’s assumptions were on collection, so it was not directly quantified in that calculation, she had assumed that the Council’s council tax base should not be affected by the different levels for 80%, 90% to100% because of the differing collection rates.  The Head of Revenues and Benefits added that there was a whole group of residents that did not pay anything, single residents suffered the most and by removing them from paying council tax it should effectively improve collection rates.

Councillor Ashley Wise proposed the recommendations, which were seconded by Councillor Lloyd Bowen.

Recommendations to Council:

(1)   That a scheme offering a maximum 100% Council Tax Support be moved.

(2)  That the percentage support in income bands 2 to 4 be increased by 10%.

(3)  That the income thresholds for each band by the welfare benefit uplift applied by the Department for Work and Pensions (DWP) for 2026/27 be increased.

(4)  That the minimum income floor for self-employed working age claimants be removed.

(5)  That the Council Tax reduction Scheme with DWP benefits be aligned by disregarding the additional compensation payments listed in paragraph 2.20.

(6)  That delegated authority be given to the Director of Resources and the Head of Revenues and Benefits to update and publish the Council Tax Reduction Scheme (CTRS) policy in line with the agreed recommendations.