Have your say on proposed changes to our council tax support scheme
Our current council tax support scheme launched in April 2022 when it changed to an ‘income band’ approach, making it fairer and easier to administer while continuing to shield those in most need.
Since the new scheme has been in place, we've listened to residents’ feedback and are proposing a small number of further changes to make it fairer and more consistent while continuing to target support towards our most vulnerable residents who need it most.
Before we make any changes, we want to hear people’s views. The consultation is open to all; people who currently receive council tax support, the voluntary and community sector organisations that provide extra help to people receiving council tax support and anyone who has any interest in the level of council tax support provided by the council.
What changes are we proposing and who will be affected?
| Proposed change | Who is affected? |
| Remove the minimum income for disabled, self-employed residents We're proposing to remove the minimum income amount applied to council tax support claims where the taxpayer or their partner are disabled, self-employed and earning less than £297.93 per week. Instead, we propose to base the amount of council tax support (CTS) on actual income, meaning if they earn less than the minimum amount currently applied, they will receive more support. In the current scheme, the minimum amount of £297.93 is based on a 35-hour working week at minimum wage. Resident feedback told us that there are reasons why disabled residents or their disabled partners may not be able to increase their hours or income and as a result, we should not use an assumed income that may be unachievable in their circumstances. | Households where the main taxpayer or their partner are self-employed, disabled residents |
| Change to the rate income bands are increased annually We propose to change the rate income bands are increased annually. Currently, income bands increase in line with the level of the Consumer Price Index (CPI). We are proposing to change the increase so that it is in line with the amount council tax is increased for that year. This change will affect all claimants equally. Due to the current unprecedented global financial outlook, CPI is at a much higher level than previously predicted – 9.4%. The proposed change suggests income bands increase in line with council tax - currently 3%. | All households that receive council tax support |
| Applying a deduction to the amount of CTS provided to households of disabled residents where there are other adults in the house Our proposal is to reduce the amount of support to households where the main taxpayer or their partner are disabled and not working, and there are other adults in the household The proposed rate of the weekly deductions is £5 if the other adult is not working, £10 if earning up to £23,999 and £30 if earning £24,000 or over. This change is in line with the support provided to households where the main taxpayer or their partner are disabled and working, and one of the principles of the CTS scheme - that everyone in a household should pay towards council tax. | Households where the main taxpayer or their partner are disabled and not working and there are other adults in the household |
Who is not affected?
Pensioners who receive CTS are not impacted by these proposed changes.
Support for those affected
Discretionary hardship funding remains available for households struggling to pay their council tax, with support allocated on a case-by-case basis.
Have your say
Before we make changes to our council tax support scheme we must, by law, ask for your feedback. This consultation is open to all; people who currently receive council tax support, the voluntary and community sector organisations that provide extra help to people receiving council tax support, and anyone who has an interest in the level of council tax support provided by the council. Please take the survey below - closes at 11.59pm, Thursday 1 December.
If you would like this information in a different format, contact CTSconsultation@croydon.gov.uk
What will happen next?
Feedback from this consultation will be used to consider the fairness of the proposed scheme and help us prepare the final recommendations which will be taken to Cabinet on 25 January and Full Council 1 February.
If agreed, the new scheme would start 1 April 2023.
You said, we did
Thank you to everyone who took part in the survey and gave their views on the proposals. 144 responses were received and a report of the responses is available on the council's website.
The proposed scheme was approved at Full Council on 1 March 2023.
From April 2023, the amount of council tax support provided to the borough’s most vulnerable residents will be linked to the proposed increase in council tax, meaning more support to those who need it most.
After listening to residents during this borough-wide consultation, the council made further changes to the scheme to help more disabled households with their council tax bills.
Changes for those households will include protection where adult family members receive a carer’s allowance, and the removal of the minimum income requirements for disabled people who are self-employed, providing more support.
Residents who receive council tax support will be updated about any changes to the amount they receive in their annual decision notice, due in mid-March.