Agenda item

Council Tax Exemption for Care Leavers

To consider the report of the Director Finance.

Decision:

Agreed:

RECOMMENDED that in principle agreement be given for a Council Tax exemption for care leavers up to the age of 25 and looked after by Devon County Council, subject to a further report setting out all the implications including the financial impact on Exeter City Council.

Reason for Decision: As set out in the report.

Minutes:

The Executive received the report which sought Members agreement for in-principle support for a Council Tax exemption for care leavers up to the age of 25. A subsequent report would be presented to Executive in November 2023 outlining the financial impact of the in-principle support

Work was being undertaken with Devon County Council and other District Councils in Devon, following recent focus on the responsibility of local councils in being a Corporate Parent. Members were referred to the seven corporate parenting principles outlined in the report and advised that district level authorities must have specific regard to Council Tax, Housing and Leisure functions. Although the report was focussed on Council Tax, work with Team Devon was being undertaken in relation to care leaver support for Housing and Leisure functions.

The Service Lead Revenues, Benefits and Customer Access presented the report and made particular reference to:-

· There had been a Devon wide process for supporting care leavers with a Council Tax liability, which had been agreed by Members in 2019. The Council Tax Team Leader had been designated the nominated contact in Exeter for care leavers in relation to Council Tax. For those care leavers entitled to Council Tax support, where there was any shortfall the financial difference could be cleared using the exceptional hardship fund. For those with no entitlement to Council Tax support, a write-off could be considered.

· Section 13A (1) (c) of the Local Government Finance Act 1992, provided Councils with discretionary powers to reduce the amount of Council Tax payable to a person, and any write off amounts would be made under these powers.

· The cost of Council Tax support and the exceptional hardship fund was apportioned between Exeter City Council, Devon County Council and the Police and Fire Authorities as per the preceptor percentages for Council Tax. However, Exeter City Council would have to meet the cost of any write offs.

· Although Devon County Council was the corporate parent, there was a county wide ambition to strengthen the local offer to care leavers and following advice from the National Advisor for Care Leavers, an element of the offer was a Council Tax exemption for care leavers up to the age of 25.

· There were 161 care leavers between 18 and 25 in Exeter, of which 50 had a current Council Tax liability and 32 of those were in arrears, highlighting that there was a vulnerability for younger people.

· The annual cost would be dependent on the agreed final policy, however, the discretionary awards for these 50 residents after national discounts, would be a £60,000 cost to the Council. If the discretionary awards were made after the Council Tax support application, the cost would be reduced to £25,000 per year. Anything introduced during this financial year would likely reduce the amount to an estimated £12,000.

· Section 151 Officers were meeting regularly to discuss how exemptions would work to support the final policy for Member approval. It was likely that there would be amendments made to the Council Tax Support Scheme from April 2024 to award 100% Council Tax support to care leavers. Exeter having the highest number of care leavers, had a higher financial risk, and negotiations on funding mechanisms were still on going.

Councillor D. Moore, as an opposition group leader, spoke on this item and welcomed the report. As part of implementing the policy, she suggested that as single person relief is lost when a person rented a room to a care leaver that retaining the single person relief until the care leaver was 25 years, would encourage additional availability of accommodation to care leavers until they were ready to live on their own.

The Leader advised that the suggestion could be raised with Team Devon as part of the partnership working in developing the final policy.

Councillor Jobson, as an opposition group leader, welcomed and supported the report.

During the discussion the following points were made:-

· the in-principle proposal had brought District Councils together to support care leavers and any final proposal would be made in cooperation with other authorities to agree a best practice solution;

· the Council had a range of support mechanisms for other residents requiring support, and the proposal was seeking to provide support to care leavers who were identified as being vulnerable and would benefit from the policy; and

· the policy would support vulnerable people in the community whilst supporting officer resources.

Members welcomed the report which would provide support to younger residents at financial risk and made their thanks to the Service Lead Revenues, Benefits & Customer Access for the work undertaken.

In response to questions and points from Members, the Service Lead Revenues, Benefits and Customer Access explained:-

· the estimated £12,000 cost would only apply should the policy be introduced during the current financial year;

· Section 13A (1) (c) of the Local Government Finance Act 1992, set out the governance legislation, in which Exeter City Council had discretionary powers and would incur the full cost. Where a care leaver was given Council Tax Support, the cost of the scheme would be shared between the preceptor authorities; and

· prior to receipt of the latest carer details, the Council had only been notified of 16 care leavers since 2019. From looking at individual cases due to being unaware that the account belonged to a care leaver, that unfortunately in some instances recovery action had been taken but this has now been withdrawn.

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