Croydon council tax support cuts could hit 19,000 residents

More than 19,000 low-income and disabled residents in Croydon could see their council tax bills increase under proposed changes to the borough’s council tax support scheme. The scheme currently costs the council around £39 million annually. If implemented in April 2027, the proposed adjustments would align Croydon's support levels with neighbouring boroughs and would result in the borough having one of the lowest council tax support provisions in London.

Impact on vulnerable residents

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Under the proposals, non-working disabled claimants could see their maximum council tax discount reduced from 100 per cent to 50 per cent. Official figures from Croydon Council indicate that nearly half of all current working-age support claimants, 49.6 per cent, receive a disability benefit. Additionally, single parents with children under five might experience a reduction in their maximum support from 80 per cent to 50 per cent. For general working-age claimants without disabilities, the maximum support could fall from 75 per cent to 50 per cent. The council is also considering lowering the property band cap for support from Band D to Band C.

The proposed changes are part of the council's efforts to identify between £3.6 million and £12 million in annual savings. These savings are being sought as part of a 'Best Value' intervention mandated by government-appointed commissioners overseeing the council's financial stability. Currently, Croydon offers a mid-to-high level of council tax support compared to other London boroughs, providing more generous assistance than areas like Bromley, Enfield, and Harrow.

Consultation and next steps

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Executive Mayor of Croydon, Jason Perry, stated that the changes are necessary to align with other boroughs and address financial challenges. He emphasised that no final decisions have been made and that a consultation will offer residents an opportunity to shape future recommendations. The council is seeking feedback on potential mitigations, including an expanded hardship scheme for up to two years to provide transitional protection for those facing particular financial difficulties due to the changes. If the Cabinet approves the consultation on September 23, a statutory six-week consultation period will follow, with a final decision expected from the Full Council in February 2027.

Croydon Labour Leader Stuart King noted that council tax has increased by over 33% since Mayor Perry was elected in 2022. He stressed the importance of a comprehensive and meaningful consultation, including a full equalities assessment of each option, to ensure the right balance between affordability for taxpayers and support for the poorest households.