To consider a report from the Leader of the Council.

1)    The Executive notes the contents of the report.

2)    That the Executive approve the proposed immediate interim measures, as detailed in section 6.1 of the report, as the basis of assessment of all new claims made by those in receipt of UC with eligible childcare costs.

3)    The Executive approves the proposal that the wording for the Council’s CTRS 24/25 should be the same wording as contained in the current CTRS 23/24, and that the Council should apply the 24/25 CTRS to claims generally but operationally assess claims made by those in receipt of Universal Credit with eligible childcare costs in accordance with the strict wording in the 22/23 CTRS, which will instead be applied to ensure that such claimants are not assessed any less favourably.

4)    The Executive approves the proposed scope of claims detailed in section 6.3 of the report.

5)    The Executive approves the proposal to undertake individual reassessments of each claim that is in scope of the restitution exercise.

6)    The Executive approves the proposals detailed in section 6.5 of the report in respect of engaging with in-scope claimants.

     The Leader of the Council presented a report with regard to the Council Tax

Reduction Scheme. Earlier this year the Council had cause to consider its Council Tax Reduction Scheme with regards to claims made by claimants in receipt of Universal Credit (“UC”) and who had eligible childcare costs. This report is intended to inform the Executive of matters which have arisen as a consequence of the review exercise, and it also sets out the decisions which now need to be made in relation to proposed next steps.

The Leader reminded Members that approximately 13,000 Trafford residents receive benefit. In January each year the scheme is reviewed and is ultimately agreed by the Executive to coincide with the annual Council Tax Bills for the forthcoming year. Following the Council applying the scheme for 2023-24 a Valuation Tribunal made a decision on 17 March 2023 to determine that the Council had not addressed a claim from a resident who received UC with eligible child care costs in accordance with strict wording of the scheme. On the basis of the Valuation Tribunal and subsequent review it is accepted that claims made by all those in receipt of UC with eligible child care costs should be reassessed I accordance with the strict wording of the scheme. A small number of claims have been identified as being potentially affected. We are looking at approximately 100 each year and a letter has been sent to those claimants. Those who think they have been impacted can apply for the Re-assessment of their claim for the period since April 2017. We will write to all those in receipt of UC with eligible child care costs. Claims going back to 2017-18 finance year where claimants were either assessed as being entitled to receive partial Council Tax support or where they were assessed as having a nil entitlement. We will be inviting applications for re-assessments to be made by midday on Wednesday 28 February 2024.

In response to a query about whether the current Scheme has ended up unrecognisable due to being re written over the years since 2014 or that it was originally wrong from the outset, the Leader informed Members that the Council had been following a process year on year. The wording has been tightened up this year and this is where this anomaly has become apparent.

     The Leader informed Members that a full answer to that query would be

     circulated to Members following the meeting.

     A further query was raised regarding the indication in the report that the

     additional cost to the scheme could be either £73,000 or £97,000, page 244

     of the report refers, so what would the actual cost be and did this include

     administrative costs.

     The Leader informed Members that the these costs are based on a flat rate

     being applied to each scope claim or undertaking an individual assessment

    of each scope claim. With reference to paragraph 6.4.3 of the report, we now

    believe it is possible to apply the second option i.e to reassess each

    individual claim which will cost £97,000. On the point of administrative costs

In response to a query about the year-on-year costs attached to this anomaly the cost of which could be reduced by applying a flat rate figure as opposed to individual assessments, the Leader made reference to paragraph 6.4.5 of the report which shows the likely cohort of people on a yearly basis. We anticipate that the cost will be absorbed into future years so we are looking to do with this proposal for next year is to carry forward the 2023-24 policy adopted in January and this will come into effect on 1st April 2024 but the child care element of it to maintain the policy that was in place in 2022-23. The likely impact will be as shown in the table with around 100 people extra a year. There will be certain benefit changes in 2024 and when these are known a review will be undertaken and a full assessment will be made at that point. We are wanting to make sure we have a clear policy for the next year ahead. We will follow the statute of limitations and if people come outside the scope they will be assessed on an individual basis.

RESOLVED: That

(i)   note the contents of the report;

(ii)  approve the proposed immediate interim measures, as detailed in section 6.1, as the basis of assessment of all new claims made by those in receipt of UC with eligible childcare costs;

(iii)  approve the proposal that the wording for the Council’s CTRS 24/25 should be the same wording as contained in the current CTRS 23/24, and that the Council should apply the 24/25 CTRS to claims generally but operationally assess claims made by those in receipt of UC with eligible childcare costs in accordance with the strict wording in the 22/23 CTRS, which will instead be applied to ensure that such claimants are not assessed any less favourably;

(iv)  approve the proposed scope of claims detailed in section 6.3 of the report;

 (v)  approve the proposal to undertake individual reassessments of each claim that is in scope of the restitution exercise; and

(vi)  approve the proposals detailed in section 6.5 of the report in respect of engaging with in-scope claimants.