Consulting on local Council Tax Support schemes

1. Consulting on local Council Tax Support schemes Dr Phil Agulnik Entitledto 19th June 2012

2. Structure of webinar • Introduction • Timetable for introducing local schemes • Guidance on how to consult • Existing consultation websites • A model consultation website • How the software works

3. Introduction: I am... • An economist specialising in social security • Before Entitledto I worked for DWP and other central govt. departments • Entitledto supply a free public benefits calculator performing over 2 million calculations a year • We provide a range of benefit calculators for local authorities, including self-service, adviser and under occupation calculators • Entitledto are an IRRV strategic partner (as are Destin Solutions and Coactiva)

4. My papers on local support for Council Tax • August 2011: “The impact of the government’s proposals for replacing Council Tax Benefit” • provides a breakdown of the effect of the cut on each LA after allowing for the exemption of pensioners • suggests that localising single person’s discount better idea • February 2012: “Designing local Council Tax Support schemes” • describes options for reducing spending • suggests capping at Band A/B/C (and lower caps for childless households) is least damaging option

5. Timetable for introducing local schemes (DCLG Dec 2011) • Autumn-Winter 2011/12 • Government publishes a response to the consultation. • Introduction of Local Government Finance Bill (including provisions for localisation of council tax support). • Central and local government begin working on model schemes. • Spring 2012 • Primary legislation in passage through Parliament. • Government preparing and consulting on draft secondary legislation. • Technical consultation on grant distribution

6. Timetable for introducing local schemes (DCLG Dec 2011) • Summer 2012 • Primary legislation passed & secondary legislation prepared. • LAs designing local schemes, scoping IT changes. • Autumn / Winter 2012/13 • Secondary legislation passed (early Autumn). • Grant allocations published • LAs establishing local schemes : consultation with major precepting authorities and public, revisions to schemes. • Technical changes to systems begin • LAs set budgets and adopt schemes (Jan 31st 2013)

7. Guidance on how to consult • Discussed in Chapter 2 of “Localising Support for Council Tax: A Statement of Intent ” DCLG, May 2012 • But it doesn’t say much! In general LAs are free to decide how to approach consultation • Government-wide guidance in “Code of practice on Consultation”, BERR, July 2008 • More useful in terms of a how to guide, and includes ‘Sedley requirements’ (or ‘Gunning principles’) • Sets out 7 principles of consultation

8. DCLG guidance from ‘Localising Support for Council Tax - A Statement of Intent’ “before adopting a scheme, the billing authority must in the following order: • consult any major precepting authority which has power to issue a precept to it, • publish a draft scheme in such manner as it thinks fit, and • consult such other persons as it considers are likely to have an interest in the operation of the scheme.”

9. DCLG guidance from ‘Localising Support for Council Tax - A Statement of Intent’ “Although Government’s code of practice on consultation states that normally 12 weeks is appropriate, billing authorities may wish to consider the appropriate length of their consultation depending on the impact of their proposals and the ability to complete the consultation exercise within budgetary timetables. The code of practice indicates that where timing is restricted, for example, due to having to meet a fixed timetable such as a budget cycle, there may be good reason for a shorter consultation...”

10. Code of practice on consultation Guidance describes seven consultation criteria: • When to consult • Duration of consultation exercises • Clarity of scope and impact • Accessibility of consultation exercises • The burden of consultation • Responsiveness of consultation exercises • Capacity to consult

11. Code of practice on consultation Criterion 4: Accessibility of consultation exercises • Consultation exercises should be designed to be accessible to, and clearly targeted at, those people the exercise is intended to reach. Criterion 5: The burden of consultation • Keeping the burden of consultation to a minimum is essential if consultations are to be effective and if consultees’ buy-in to the process is to be obtained.

12. Existing consultation websites • At the time of writing LAs consulting on proposed schemes are: • Chiltern DC • LB Harrow • LB Brent • Not a representative or comprehensive survey! But instructive to see what others are doing • Chiltern and Harrow set out a number of options • Brent sets out one proposed scheme

13. Chiltern’s options • Keep the current scheme as it is, but reduce the amount of support to all working age applicants by 20% • The same as option 1 but with protection for vulnerable groups • Keep the current scheme, but set a minimum level of support at £5 per week, so anybody who qualifies for less than this figure would receive nothing • Keep the current scheme but set the maximum support based on Band D council tax figure (£1506 per annum) • Keep the current scheme but set the maximum support at a figure of £1200 per annum Details at http://www.chiltern.gov.uk/ctbchanges

14. Harrow’s options • Model scheme 1 • Introduce a maximum limit of 75% of Council Tax liability • Model scheme 2 • Introduce a maximum limit of 80% of Council Tax liability • Increasing the taper from 20% to 25% & remove extra benefit for people who work longer hours & change capital limit to £6,000 • Model scheme 3 • Introduce a maximum limit of 75% of Council Tax liability • Increase non-dependant deductions by 50% & change capital limit to £10,000 & increase earnings disregard by £10 a week • Model scheme 4 • Introduce a maximum limit of 75% of Council Tax liability • Include Child Benefit as income Details at http://www.harrow.gov.uk/ctbconsultation

15. Brent’s proposed scheme • Maximum support set at 80% of Council Tax liability, so 20% minimum payment • 100% support retained for vulnerable groups: disability premium, Disabled Persons Reduction for Council Tax, War Disablement Pension and War Widow’s Pension Other changes • Capital limit reduced from £16,000 to £6,000 • Taper on excess income increased from 20% to 30% • Non dependant deduction rates doubled • Applicable amounts frozen Details at http://www.brent.gov.uk/localcounciltaxsupport

16. A model consultation website • Set out your proposed scheme(s) • Background: new legislation and spending cuts • Potential changes to reduce spending • Principles for a new scheme • Consideration by members (include council papers?) • Examples of what it means in practice • Help to show the effect of proposed scheme(s) through hypothetical example cases • Illustrate in broad terms who is most (and least) affected • Also useful for communicating with members and precepting authorities

17. A model consultation website 3. Calculator to let people see the effect on them • Show the effect of proposed scheme(s) on individual households • Helps to screen out people who mistakenly think they are affected, e.g. pensioners • Early warning of reduced entitlement for affected groups • After consultation becomes a calculator for the new scheme 4. Consultation questions • Last part of the process is to get informed views • Can be linked to from end of calculator • LAs often have corporate consultation websites including analysis of responses, e.g. Limehouse software

18. How the software works • Model consultation website available at www.counciltaxsupport.com • Calculator is based on Entitledto’s self-service benefit calculator for LA websites • Examples are modelled using policy option functionality added to our adviser software • We will add policy changes as they arise in response to clients’ proposed schemes • Login at www.irrv.e2adviser.co.uk

19. My contact details Email: phil@entitledto.co.uk Phone: 07816 638590 Web: www.counciltaxsupport.com Or www.solutions.entitledto.co.uk