Wandsworth Council is proposing significant changes to its Council Tax Reduction Scheme, with new measures planned to be implemented from April 2027. The initiative aims to offer enhanced support to more low-income households while ensuring the scheme's financial sustainability and that all residents contribute towards the cost of local services.
The consultation focuses on support for working-age households on low incomes, as rules for pension-age households and full-time students remain unaffected. The proposals are designed to provide generous initial assistance as Council Tax rates increase, ensuring the scheme is financially viable, promotes a contribution from all users of local services, and extends help to households currently receiving no reduction.
The council cites significant financial pressures due to central funding cuts, which necessitate a potential 94% rise in Council Tax next year. To shield those on the lowest incomes from a substantial increase, support through the Council Tax Reduction Scheme is set to rise from approximately £6.9 million to £12.4 million in 2027/28. This will be followed by a gradual reduction back to £7.1 million by 2030/31, a four-year approach to phase the impact of higher taxes.
The council asserts that the proposed increase in Council Tax for 2027/28 is based on balancing the general fund budget. The return of the Council Tax Reduction Scheme to an overall cost of £7.1 million by 2030/31 means the initial higher cost is not a factor in the proposed 94% increase.
A core principle of the proposed changes is fairness, with the council believing that everyone using local services should contribute. Currently, some working-age households receive 100% Council Tax Reduction. The new scheme would remove these 100% discounts for working-age households, requiring a contribution from everyone, though those on the lowest incomes will continue to receive substantial support tailored to their circumstances.
The proposals also aim to extend help to more low-income working households whose earnings currently fall just above the existing thresholds. New income bands will be introduced, allowing individuals who previously did not qualify for support to receive assistance with their Council Tax for the first time.
Wandsworth Council believes these proposals offer a better, fairer, and more sustainable balance, providing support where needed, ensuring contributions from all, allowing households time to adjust, and maintaining an affordable scheme alongside essential services.
These changes are currently proposals, and a final decision will be made after a public consultation. Residents are encouraged to share their views via the council's questionnaire before the changes take effect on 1 April 2027.
