Rent freezes and council tax support - how Hartlepool council chiefs plan to help vulnerable households

Council chiefs are to make a decision on plans to retain their existing local council tax support scheme and implement a rent freeze for properties which are part of their housing stock.

Hartlepool Borough Council’s Finance and Policy Committee in August recommended maintaining its local council tax support scheme (LCTS) at 12% for the eight year in a row.

This would mean financially-disadvantaged working-age households would continue to only be required to make a minimum 12% contribution towards their council tax bills.

Councils are required to fully protect low-income pensioners eligible for LCTS support.

Councillors on the committee also recommended implementing another rent freeze for properties in its housing revenue account (HRA) for next year.

This is estimated to provide capital investment of £3.138million, including a forecast Homes England capital grant of £1.064million, and would allow for 28 new council homes to be provided.

The recommendations are to go before a meeting of Full Council on Thursday for a decision to be made, with officers noting it would provide financial certainty and sustainability going into 2021/22.

A report from Chris Little, director of finance and development, to the finance and policy committee last month warned there will be an increasing number of people claiming local council tax support due to the coronavirus pandemic.

He said: “The Covid pandemic has increased the number of working age households eligible for LCTS in 2020/21, owing to the impact of higher unemployment and /or reduced contracted hours of work.

“The increase in households eligible for LCTS is expected to continue into 2021/22 and the reduction in eligibility will be driven by the strength of the economic recovery.”

The recommendations also include setting a local welfare support budget of £200,000 for 2021/22.

In 2019 a consultation was held on whether the LCTS contribution rate should be increased to one of 14%, 16%, 18% or 20% – or whether to maintain the current level.

Of the 343 responses, almost two-thirds were in favour of maintaining the LCTS scheme at 12% – a rate which had been in place for six years.

The report also noted the rent freeze for the HRA account would increase the number of properties available, help address housing needs and make the HRA financially more resilient, while not increasing rent for tenants.

A rent freeze was also agreed last year, which meant between 13 and 19 new council properties would be expected to be provided in 2020/21, with the exact number depending on Homes England grant funding.

Currently Hartlepool Borough Council owns and manages around 300 properties after investing in social housing and reopening its housing revenue account (HRA) in 2016.

The Full Council meeting will be streamed live via YouTube from 6pm on Thursday on the ‘Hartlepool Council meeting videos’ channel.

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