There is clear evidence that care leavers are likely to struggle with their finances therefore, any assistance that can be provided will be of benefit. It is proposed that the Council introduces a Council Tax discretionary discount scheme which looks to provide the following support to care leavers in Dorset from 1 April 2020.
That a 100% Council Tax discretionary discount be awarded in respect of those cases where the care leaver is under the age of 25 and is solely responsible for the Council Tax.
That where a care leaver, who is under the age of 25, lives with someone else who is responsible for the Council Tax, they are disregarded for the purposes of determining whether a 25% single person’s discount applies.
That support will only be provided in respect of those care leavers:
- for whom Dorset Council has a corporate parenting responsibility
- who live in the Council’s area
That, in the case of where a 100% Council Tax discretionary discount be awarded in respect of those cases where the care leaver is under the age of 25 and is solely responsible for the Council Tax, above support will be automatically awarded where the Care Leaver is in regular contact with Dorset Children’s Services. In all other cases the Council Taxpayer will be required to apply for the discount or disregard.
Many care leavers struggle financially due to the lack of support networks of family and friends and financial education whilst in care. A number of the Council’s Revenues & Benefits Service have received “personal budgeting support” training to help customers who are moving onto Universal Credit. There is also an opportunity to make this support available for care leavers so that they become better educated and able to deal with their finances in the future.
Not all the 104 current care leavers, mentioned above, are responsible for Council Tax. Some will already be exempt due to their circumstances (e.g. they are a student, they are severely mentally impaired, etc).
Also, many care leavers currently live in either “sheltered or foyer” type accommodation they are not directly liable for Council Tax. In such cases their rent includes a small contribution towards the Council Tax and this is covered by any housing benefit payments they receive.
We have identified 29 cases where the care leaver is directly responsible for Council Tax and further 30 cases where the Council Taxpayer may, potentially, be entitled to a 25% single person’s discount if the care leaver was not living with them.
The maximum cost to the Council, based on current levels, would be £46,472 per year. The information below provides a breakdown of this cost.
Type
Care leaver is directly responsible for Council Tax
Number
29
Total cost £
33024.00
Type
Cases where 25% discount may be awarded if care leaver is disregarded*
This is currently the maximum number of cases where a 25% single person’s discount may be awarded.
Number
30
Total cost £
13448.00
Total
Number
59
Total cost £
46472.00