Croydon Council proposes cuts to council tax support

More than 19,000 low-income and disabled residents in Croydon could face increased council tax bills under proposed cuts to the borough’s council tax support scheme. The changes, if implemented in April 2027, would align Croydon's support with neighbouring boroughs and aim to generate between £3.6 million and £12 million in annual savings.

The proposals are part of Croydon Council's 'Best Value' intervention, a process mandated by government-appointed commissioners to stabilise the council's finances. The current council tax support scheme costs approximately £39 million per year, with £25 million allocated to working-age residents. If the proposed changes are enacted, the maximum council tax support would be capped at 50%, placing Croydon among the boroughs with the lowest levels of support in London.

Impact on Vulnerable Residents

Under the proposed changes, non-working disabled claimants could see their maximum council tax discount reduced from 100% to 50%. Official figures indicate that nearly half of all current working-age support claimants in Croydon, 49.6%, receive a disability benefit. Single parents with children under five might also experience a reduction in their maximum support, from 80% to 50%. For general working-age claimants without disabilities, the maximum support could fall from 75% to 50%.

Additionally, the council is considering lowering the property band cap for support from Band D to Band C. This would mean that residents living in homes within higher property bands would receive less financial assistance with their council tax.

Consultation and Next Steps

Executive Mayor of Croydon, Jason Perry, stated that the changes are being considered to ensure the council provides appropriate support while addressing financial challenges and aligning with other London boroughs. He emphasised that no final decisions have been made and that a consultation will offer residents an opportunity to influence recommendations. The council is exploring potential mitigations, including an expanded hardship scheme for up to two years to provide transitional protection for those facing particular financial difficulties.

Croydon Labour Leader, Stuart King, expressed concern over the potential impact on over 19,000 residents. He stated that the upcoming consultation must be comprehensive and meaningful, with a full equalities assessment of each option presented to councillors. He questioned how a balance could be struck between affordability for taxpayers and the support needed by the poorest households.

If the proposals are approved by Cabinet on September 23, a statutory six-week consultation will commence. A final decision is expected from Full Council in February 2027, with any implemented changes taking effect in April 2027.