A report into recently brought in changes to council tax benefits in South Holland say it’s saved local authorities money but led to increased debt.
In April South Holland District Council brought in changes to the Local Council Tax Support (CTS) Scheme.
The changes included the maximum amount of support a working age person could claim for their council tax reduced by five per cent to 70 per cent and therefore must pay at least 30 per cent.
Further to that the Second Adult Rebate, paid to families where the claimant’s own income is too high for CTS but other adults’ combined income in the household is low enough, was reduced to 20 per cent and will again be reduced to ten per cent in the next financial year.
A report to South Holland District’s council by Sharon Hammond, the authority’s head of service, revenues and benefits, forecasts that by the end of the current financial year, the district council will save £28,353, Lincolnshire County Council £195,897 and Lincolnshire Police and Crime Commissioner £33,509.
However the report states that as of October 31, 2017 the percentage of collected debit was 67.30 per cent, down 0.31 per cent on the previous year.
The report states: “Collection and recovery becomes more challenging as the amount working age households are required to pay in Council Tax increases and it becomes more difficult to recover the full charge in-year.
“Careful maintaining will be require as this change continues to be implemented.”
The report continues: “It is estimated that there will be a £28k cost reduction in CTS expenditure for South Holland District Council this year, compared to the estimate of £20k suggested in the report to council on January 10, 2017.
“We are only part-way through the year of the CTS scheme changes introduced in 2017/18 and it is not possible to analyse the effects of the significant changes made with any certainty although debt levels have risen slightly and this will continue to be closely monitored.
“Continuation of the current scheme will provide a degree of certainty as claimants begin to move onto Universal Credit.
“A full review would be beneficial for the 2019/20 financial year.”
