Decision details

8.1

The Committee considered a report of the Director of Children and Families which outlined the proposal to introduce a more simplified system by which Care Leavers in Sheffield, aged between 18 and 21, could be supported to reduce their Council Tax liabilities.

8.2

RESOLVED UNAMIOUSLY: That the Finance and Performance Policy Committee:

1.    Approve the proposed change in approach to reducing Council Tax liabilities for Care Leavers Council Tax Exemption Scheme between the ages of 18 and 21 to take effect from 1st April 2025

2.    Approve the proposal to allow backdated applications to the start of the financial year in which the application is made (but no earlier than 1st April 2025)

3.    Agree to the clearing of current council tax arrears for Care Leavers.

4.    Agree that support for Care Leavers with a Council Tax Liability outside of the City be determined on a case-by-case basis based on the individuals’ circumstances

8.3

Reasons for Decision

8.3.1

The proposal to provide full Council Tax support to Care Leavers 18-22 is an excellent investment to improve the lives of Care Leavers giving them a strong start to adult life.

8.3.2

The approach will support young care leavers aspirations, growing independence and ability to deal with new financial responsibilities.

8.3.3

This has clear advantages in both the short and long term for the care leavers and the Council.

8.4

Alternatives Considered and Rejected

8.4.1

Provide full support until 25 years old - There are 104 care leaver accounts where the care leaver is aged between 22 and 25. The table below shows what the total net liability would be for this group once all statutory exemptions were applied to the accounts.

As for the 18-22 age group assuming similar numbers of Care Leavers in 2025/26, a 5% increase in Council Tax and paying the 15% precept to South Yorkshire Police and South Yorkshire Police and Fire the cost of fully supporting this age group would be c£147,000, Therefore, should the Council choose to offer support under the proposed scheme for all 18 to 25 year olds, then the overall cost would be c£242,000 for 2025/2026 This would have the same benefits as Option 1 and would provide support for longer. However, this may also increase the cliff edge for 25 year olds when statutory support from the Leaving Care service ends. It increases the overall cost to the local authority. The Leaving Care Service does not recommend this option be approved by Members

8.4.2

Provide full support to 18-22 year olds and graduated support until 25 years old -All LA’s who offer support to Care Leavers in relation to their Council Tax liabilities offer support to 18–21-year-olds, with some but not all, offering some support to 22- 25 year olds. One option considered would be to offer reduced support for this age group in order to provide some assistance but also to ready them for the move to a potential full charge when they become 25. The table below shows what this might look like for 2025/26 based on the assumption set out above regarding Council Tax increases and payments to precepting authorities.

This would provide the same benefits as Option 1to 18–21-year-olds and reduce the impact of responsibilities for young people as they “age out” of statutory support, allowing them greater time to adjust to this additional financial responsibility. However, this approach may increase the complexity of the offer to Care Leavers, which is something the recommended approach avoids, and it could increase administrative costs. The additional challenge is that after 21years, Care Leavers become increasing independent and young people choose to no longer receive ongoing individual support from the Leaving Care Service, therefore the opportunity to support young people to access and understand a graduated level of support will reduce. The Leaving Care Service does not recommend this option be approved by Members

8.4.3

No change to the current approach - By not changing the current approach the future cost of the scheme would not increase significantly, other than by the annual inflationary pressures of council tax increases. However, this approach has

• Already been criticised for not offering a clear, simple process of support to care levers

• Been shown to not offer the same support to all care leavers

• Been shown to be administratively burdensome and inefficient

• Been shown to create debt which is difficult to collect

For the above reasons the Leaving Care Service does not recommend this option be approved by Members