Decision details

That proposals in the report relate to the Local Council Tax Support (LCTS) scheme for working age claimants and that pensioner households claiming LCTS are unaffected and continue to be able to receive up to 100% support, subject to eligibility, be noted.

That in setting the budget for 2024/25, savings amounting to approximately 10% of the councils overall net budget were agreed and that within this sum was £1.1m relating to potential changes to LCTS, subject to consultation and agreement, effective from 2025/26 onwards, be noted.

Noted that:

Øthe direct cost of support to pensioner and working age households is £26.2m of foregone council tax to the council and GLA, of which £13.3m is working age support attributable to the council

ØLCTS in Greenwich is within the top quarter of ratios between “working age support to council tax income” in London

Øaround half of London’s councils have recently consulted on changes to their working age schemes, also to take effect from 2025/26

Agreed that, following many years of structural under funding and in order for the scheme for working age claimants to remain affordable, the maximum level of support for working age claimants of LCTS changes from 100% to 80%, so that all households make a minimum contribution of 20% towards the total council tax bill (before support)

Agreed to increase the earnings taper for working age residents from 15% to 25%.

Agreed to increase the non-dependant deduction charge from £5 to £10 per week

Agreed to also remove the exemption for non-dependants who are in receipt of passported benefits and / or not in work.

Agreed to abolish the second adult rebate for working age claimants

Agreed to allow the use of DWP notifications of a claim for Universal Credit as a claim for Local Council Tax Support.

Agreed to create a Greenwich Supports Discretionary Council Tax Hardship Fund to assist Council Tax payers whom are experiencing financial hardship caused by the 2025/26 scheme changes, combined with cost-of-living pressures, low-incomes and low financial resilience.

Delegated to the Cabinet member for Inclusive Economy, Business, Skills and Greenwich Supports to agree details of the Hardship Fund and its implementation.