5. Will the Minister provide an update on Welsh Government efforts to make council tax fairer? OAQ53913

As I outlined in my written statement on 18 March, we continue to make progress with our programme of work to make council tax fairer. I am grateful to colleagues in local government and our other partners who are supporting this important work.

With recent increases in council tax in some local authority areas, I'm sure that that will be very welcome to very many individuals and their families who are already struggling financially. The council tax reduction scheme provides support for almost 300,000 households in Wales with their council tax bill. Making care leavers exempt from paying council tax up to the age of 25 does allow some concrete support to some of the most vulnerable people at the most vulnerable time in their lives. The advice that's being developed will of course be a very big help to those who are eligible. Will you, Minister, give a regular update on how the uptake of this scheme and other schemes is developing, just to make sure that we can help and assist where that might be needed in our own areas? 

Thank you very much for raising these important issues. I agree completely that awareness raising of the support that is available out there is absolutely crucial. We have a national council tax reduction scheme, as Joyce Watson said, and that maintains entitlement to support for low-income households. The Welsh Government is providing £244 million to reduce those council tax bills for some of the households across Wales who are struggling the most. Our decision to maintain those full entitlements ensures that around 300,000 vulnerable and low-income households in Wales continue to be protected from increases in their council tax bills, and, of course, of those, around 220,000 households will pay nothing at all. I was really delighted that we were able to ensure that council tax is no longer charged to care leavers up to the age of 25, and I'm really pleased with the leadership that local authorities showed in deciding to do this on a voluntary basis, because they saw the value that it could give. But I'd be more than happy to provide any updates that I can in terms of ensuring that people are getting the help that they are fully entitled to.

The council tax system is undeniably regressive. In Plaid Cymru’s last Assembly manifesto, we proposed reforming the system, which would have saved those in the lowest council tax bands up to £400 a year, and the policy would have seen anyone living in properties rated band A to D paying less. This redistribution of wealth would have been funded by those living in the most expensive properties. Do you not agree that, in the light of the latest damning figures on child poverty in Wales, showing that we're the only nation in the UK to see an increase in child poverty in the last year, that the time for talk on reform of council tax is over and that action in terms of the redistribution of wealth needs to be taken swiftly?

I point out, really, to the Member that there are actually very few properties in the top band, band I—so, only 5,400 of those across the whole of Wales—and those are unevenly distributed, so simply creating an additional upper band or a mansion tax, or some kind of additional tax on those particular properties without changes to the wider system would have limited benefits. So, we are looking at the wider system.

In October, we published a detailed update on reforms to local taxes and local government funding in Wales, and I intend to publish a further update on this in the autumn. But we are examining options for medium to longer term reform of local taxes to ensure that they are designed to best meet the needs of people in Wales. And we obviously will want to take a progressive and fair and transparent approach to local taxation, which provides funding for local services.

So, to give you a flavour of the kind of work we are undertaking, we are undertaking a substantial research project using external expertise to understand the impact of universal credit on the council tax reduction scheme, patterns of debt and rent arrears in Wales, and this research is essential in informing our legislation that supports council tax payers in the coming years. The Institute for Fiscal Studies is undertaking an in-depth assessment of the impact that the revaluation and rebanding exercise could have on Wales's domestic property tax base, if one were to be carried out, and, through this, we’ll be able to understand the viability of making the band structure more progressive. But we certainly can't do that without the kind of information that would allow us to take informed decisions.