1. Briefing on Local Support for Council Tax David Magor OBE IRRV (Hons) Chief Executive Institute of Revenues, Rating and Valuation

2. Localism and Council Tax Support

3. Council Tax and Localism The Localism Act 2011 More scrutiny on levy Just how far does the proposed power of competence go? Referendum on levels of council tax above stated thresholds Neighbourhoods, Community Councils and Parishes – a new power base? How does all this impact on local support for council tax?

4. Developing the Local Scheme

5. The Universal Credit Award The standard allowance The child responsibility element The housing cost element The limited capability for work element The limited capability for work element and the work related activity element The carer element Childcare costs element

6. SUMMARY – THE KEY STAGES IN THE UC ASSESSMENT PROCESS STAGE 3 – CALCULATE UC ENTITLEMENT (APPLY ANY SANCTIONS, ADD ANY HARDSHIP PAYMENTS) STAGE 2 – CALCULATE THE ADJUSTED UC AWARD (DEDUCT EARNINGS, CAPITAL, INCOME, BENEFIT CAP) then STAGE 0 – IDENTIFY WHO IS IN THE BENEFIT UNIT (ADULTS, DEPENDENT CHILDREN AND NON-DEPENDANTS) STAGE 1 – CALCULATE THE UC MAXIMUM AMOUNT (TOTAL ALLOWED FOR LIVING AND HOUSING COSTS) then STAGE 4 – CALCULATE THE UC PAYMENT (ADD ANY ADVANCES, APPLY ANY DEDUCTIONS) then

7. STAGE 0 – IDENTIFY THE BENEFIT UNIT One or two ‘eligible (and connected ) adult claimants, and relevant child dependents = The UC Benefit Unit Identify ( for Housing Element purposes only ) any non-dependants

8. STAGE 1 – CALCULATE THE BENEFIT UNIT’S ‘MAXIMUM AMOUNT’ BY ADDING UP RELEVANT AMOUNTS COVERING…… Childcare Element Carer Element Housing Element LCW Limited capability for Work Related Activity, or Work Element Carer Child Element/Disabled Child Additions Standard Allowance Adults Children Housing Childcare Tick indicates available for LCTS

9. STAGE 2 (a) – CALCULATE THE UC ‘ADJUSTED AWARD’ Any earnings (subject to any disregards and taper) Other applicable income minus UC MAXIMUM AMOUNT Tariff income from applicable capital minus And then...... Tick indicates available for LCTS

10. STAGE 2 (b) – ‘CALCULATE THE UC ‘ADJUSTED AWARD’ BY APPLYING FURTHER CRITERIA Any increases necessary (where Cap does/will not apply) to take account of Transitional Protection minus ADJUSTED AWARD stage 2(a) Any reductions necessary to take account of the Benefit Cap plus UC ADJUSTED AWARD equals Tick indicates available for LCTS

11. STAGE 3 –CALCULATE THE ‘UC ENTITLEMENT’ minus UC ADJUSTED AWARD Any conditionality sanctions (plus any hardship payment amounts) equals UC ENTITLEMENT Tick indicates available for LCTS

12. STAGE 4 – ESTABLISH ANY DEDUCTIONS TO BE MADE TO UC ENTITLEMENT TO WORK OUT THE ‘UC PAYMENT’ Any short-term or budgeting advance UC ENTITLEMENT plus The UC Payment equals and Any agreed deductions e.g. child support, third party rent payments) minus Tick indicates available for LCTS

13. Using existing Parameters (The Prescribed Requirements) Building on existing approaches The existing structure Personal allowances Premiums Non-dependant deductions Resources Disregards Second adult rebate Taper Excess benefit Forecasting Formulating the scheme

14. Constraints System Funding Limitation and referendums Protecting vulnerable groups Setting aside a sum for extraordinary events Political dimension Timetable Adverse consultation Collection issues

15. Administering Local Schemes in Accordance with PR Initial transition The application Calculation and award Notification Excess LSCT Appeals To the local authority To another body Arrangements for individuals subject to immigration control or are not habitually resident in the UK

16. Collection Fund Regulations Possible amendment to the Local Authorities (Funds) (England) Regulations 1992 Precepts The proposal to vary the payment schedule Views being sort from the two groups The potential for an alternative proposal The impact of the in-year financial pressure on Major Precepting Authorities

17. Council Tax Base Regulations Amendment to existing regulations rather than new ones Calculation of the impact of LSCT on the council tax base The council tax base for baseline purposes likely to remain gross of LSCT Timeline

18. Vulnerable People

19. Key Local Authority Duties The public sector Equality Duty Equality Act 2010 Duty to mitigate the effects of child poverty Child Poverty Act 2010 Duty to people with disabilities Disabled persons (Services, Consultation and Representation) Act 1986 The Armed Forces covenant Duty to prevent homelessness Housing Act 1996

20. The Public Sector Equality Duty The duty Relevant protected characteristics Requirements of the Equality Duty Welfare needs of disabled people Equality information and engagement

21. Duty to mitigate the effects of child poverty Co-operate Understand needs Develop and deliver a strategy Equality information and engagement

22. The Armed Forces Covenant Redress disadvantages Recognise sacrifices The obligation of the Whole nation State Treatment of War Pensions and the Armed Forces Compensation Scheme

23. Duty to Prevent Homelessness Families with children No blame People at risk Vulnerable The Equality Duty

24. Equality Impact Assessment Fit for purpose Data and circumstance driven Cannot be subordinated, “going through the motions” Published as part of the consultation process Adverse outcome? Potential for Judicial Review

25. The Appeal Process

26. The Process Notification Extent of detail Detailed statements Appeal to the local authority Decision Appeal to another place The Valuation Tribunal Service Enabling power already in place

27. Appealing to the VTS Read the Annual Review ! Process Need for regulation? Practice Statements Procedure Statements Sufficient expertise? Customer friendly? Is there a capacity issue?

28. The Hearing Amendment in the Bill Provision for cases to be heard before a Judge Evidence of scheme to be formally given? These are liability appeals Will there be a crossover with UC appeals? The big question “what is the potential volume”

29. Managing Risk

30. Risk sharing Sharing risk through the collection fund Deficit or surplus in the collection fund Shared the following year? Should major precepting authorities be able to influence scheme design? Varying precepts in year To reflect collection rates A new power

31. The risks of localisation If the current financial crises continues, benefit costs will continue to rise. Collection performance could suffer significantly with the 10% reduction which will fall largely on working age claimants. The impact of the reduction in housing costs as a result of housing benefit changes and the cap will have a cumulative affect on the ability to meet council tax and other domestic bills CTB is currently based on actual as opposed to estimated eligibility. Therefore an increase in the number of claimants will automatically lead to an increase in CTB costs This will expose councils to increased expenditure. Any cap on expenditure needs to protect local authorities from the burden of increased caseloads.

32. Managing the risk of fraud and error The consultation document suggests that it is for local authorities to administer support for council tax in as fair and efficient a way as is possible whilst minimising errors and the risk of fraud. The Department for Work and Pensions will be launching the new Single Fraud Investigation Service (SFIS) in April 2013. Local authority administration of fraud and error in LSCT should continue, whilst working in partnership with SFIS where the need arises. In the long term LAs will have to make their own arrangements The risk of fraud and error should be minimised by effective data sharing across all areas of the public sector. The Government have yet to realise the potential savings of comprehensive public sector data sharing coupled with effective partnerships with the private sector.

33. Managing the financial risk Billing authorities should be able to share the risk of any scheme across the tiers of administration and with Precepting Bodies Strict budgetary control is necessary to manage the financial risk Managing the Collection Fund and regular reporting will be critical There is however a need for more discussion on how risk is managed across the tiers of local authorities and between central and local government.

34. Collection Issues

35. And finally, collection issues April 2013 and beyond Collecting residue debt identical to the reduction in LSCT Collecting small balances from those in receipt of LSCT Do you apply for a liability order? If so which remedy do you use? If the debt remains unpaid how will you prove culpable neglect and/or wilful refusal?

36. And Finally, What is the IRRV doing? Membership of the Reference Board and the Delivery Group Partnership with “Destin” on a modelling tool Partnership with “Coactiva” on a Risk Based Verification tool Partnership with “Entitled to” on a UC/LSCT calculator Delivering a “Resource Centre” for LSCT Developing a Mutual model for residue fraud teams and a social enterprise for UC/LSCT/Benefit advice

38. Consulting on local Council Tax Support schemes David Magor OBE IRRV(Hons)

39. 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” July 2008 Sets out 7 principles of consultation Guidance on how to consult

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

41. “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... ” DCLG guidance from ‘Localising Support for Council Tax - A Statement of Intent’

42. Guidance describes seven consultation criteria: 1. When to consult 2. Duration of consultation exercises 3. Clarity of scope and impact 4. Accessibility of consultation exercises 5. The burden of consultation 6. Responsiveness of consultation exercises 7. Capacity to consult Code of practice on consultation

43. 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. Code of practice on consultation

44. 1. 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?) 2. 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 A model consultation website

45. 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 Includes the Equality Impact Assessment LAs often have corporate consultation websites including analysis of responses. A model consultation website

47. Equality Impact Assessments David Magor OBE IRRV (Hons)

48. The Equality Impact Assessment Process: what, why and when? What is an Equality Impact Assessment ? What is the purpose of an EIA ? When are they carried out ? Who carries them out ? Why do we carry them out ?

49. What is an equality impact assessment? Eliminate discrimination Tackle inequality Develop a better understanding of the community you serve Target resources efficiently Adhere to the transparency and accountability element of the Public Sector Equality Duty

50. What is the purpose of an EIA Reduce public expenditure in an efficient and fair way Create strong social and community networks Remove the obstacles to making things happen.

51. When are they carried out They should be carried out whenever you plan, change or remove a service, policy or function, and should be an integral part of service planning and policy development

52. Who carries them out Ownership and responsibility for an impact assessment lies at service level. Service managers and frontline staff are important in the assessment process. They will be involved in implementing actions and changes that the assessment identifies as necessary. When considering the equalities implications it is necessary to involve others who may offer challenge to views or some evidence of impact.

53. Why do we carry them out It actually helps to improve policies, strategies, procedures, functions, projects, reviews and organisational change for the whole community and not just minority groups. Equality Impact assessments are no longer a statutory requirement. However, public bodies are still required to assess the impact of their decisions, and be transparent and accountable to communities about the decisions that they are making. EIAs can help with providing efficient and effective services, and improving customer service.

54. Progressing your EIA Identify aims Collect and use evidence Assess the impact Ensure fairness Finalise your decision Communicate what has happened Review your decision

55. Do’s and Don’ts of EIAs Do involve the right people – don't try to do it on your own Don't panic! Do focus on finding real improvements in your services, procedures or policies, rather than trying to get the form completed and off your desk. Don’t treat it as a form-filling exercise; think of it as the final ‘audit trail’ of a service improvement exercise. Do build contacts and relationships with colleagues in other departments, and even from other councils, to assist and challenge the process. Don’t use the process as a 'last-minute check'. Develop plans that include time to make changes to a project, strategy or policy as identified by the EIA. Do know your customers, their needs, the barriers they face and focus on improving the service they receive. Don’t be daunted by the consultation element. Find out if research or data already exists, or consult directly with representatives of relevant groups or specialist organisations.

56. The EIA and LSCT When to do it An essential part of the local scheme Failure to do it properly may lead to a challenge An important element of the consultation process Not to be subordinated