Agenda item

Proposed New Council Tax Exemption for Care Leavers

Minutes:

The Council considered a report, presented by Councillor Jane Nightingale, Cabinet Member for Customer and Corporate Services, which sought approval to provide 100% exemption from the payment of Council Tax from 1st April, 2018 to care leavers who had left the care of Doncaster Council, were resident and otherwise liable to pay Council Tax in Doncaster for a property they occupied as their sole or main residence and were under 25 years of age.  Consideration was also given to the proposal that where a care leaver who met the above criteria who was jointly and severally liable for Council Tax with a person or persons who were not a care leaver, the exemption would still apply to the full Council Tax charge for the property. This would ensure the care leaver was not otherwise pursued for collection of any Council Tax unpaid by the other liable person(s).

 

It was reported that information provided in May 2017 by Doncaster Children’s Services Trust (DCST), outlined that there were 255 DMBC care leavers living in Doncaster; 66 of these care leavers were liable for Council Tax, and under these proposals, would see their liability reduced to zero from 1st April, 2018. The proposed scheme would support these care leavers until they reached the age of 25 and future young people leaving the care of the Council, and taking up independent residence in Doncaster.

 

Members were informed that a report published by The Children’s Society in 2015, highlighted the vulnerability of care leavers to financial pressures, in particular the difficulties encountered when entering independent accommodation for the first time.  The report suggested that care leavers were a particularly vulnerable group for Council Tax debt.

 

Members noted that approximately 66 care leavers currently liable for Council Tax would be eligible for 100% exemption under these proposals and that based on 2017/18 Council Tax charges for a Band A property, the estimated annual cost of these proposals was £55k which would be met by the Council Tax Collection Fund.  It was anticipated that the cost may be offset by a reduction in emergency payments made by Doncaster Children’s Services Trust to care leavers in crisis as well as further reducing the dependency of these young people on other services.

 

Members were also informed that Council Tax legislation did not provide a specific discount or reduction for care leavers.  However, under Section 13A of the Local Government Finance Act 1992, the Council had the power to reduce liability for Council Tax in relation to individual cases or class(es) of cases where national discounts and exemptions could not be applied.

 

RESOLVED that

 

(1)       the Care Leavers Council Tax Exemption Scheme at Appendix 1 to the report, be approved to take effect from 1st April, 2018;

 

(2)       backdated applications be allowed to the start of the financial year in which the application is made (but no earlier than 1st April, 2018); and

 

(3)       the Council Tax exemption will not apply to empty properties as this could act as a disincentive for care leavers to give the appropriate notice to landlords and increase the number of abandoned properties.

Supporting documents: