Decision Maker: Cabinet

Outcome: Recommendations Approved (subject to call-in process)

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: December 2, 2025

Purpose: Cabinet is asked to recommend to Full Council that:   (1)  the continuation of the existing Council Tax Support scheme for working-age residents into the 2025–2026 financial year be approved; and (2)  a discretionary fund of £750,000 to support households experiencing exceptional hardship be retained.        

Content: Cabinet:   (1)            recommended to Full Council that the proposed income banded Council Tax Support Scheme be continued whereby the maximum award available to working aged people receiving support remains at 85% for the Council Tax billing year 1 April 2026 to 31 March 2027;   (2)            recommended to Full Council that the Council continue to make £750,000 available for a Discretionary Hardship Fund under section 13A(1)(c) of the Local Government Finance Act 1992 as amended by the Local Government Finance Act 2012, to offer additional help and support to those suffering the greatest financial hardship as defined in the Discretionary Housing Payment and Council Tax Hardship Scheme published on the Council’s website. The current scheme is attached at Appendix 2 of the report;   (3)            recommended to Full Council that there be delegated authority to make any minor and consequential changes necessary to the detailed provision as a result of any changes in the regulations upon which the scheme is based, is given to the Strategic Director of Resources following consultation with the Portfolio Lead Member for Finance and Resources;   (4)            noted that the income banded scheme treat earnings and self-employed earnings as income to determine a households level of income against the proposed income bands. All other income should be disregarded;   (5)            noted that the scheme will continue with two charges for non-dependant adults within households. £20pw for those in work & £8pw for those out of work;   (6)            noted working-age residents would be entitled to support of up to a maximum of 85%, depending on a person’s level of income, household composition and level of capital and whether they fall within one of the protected groups: households with limited capability to work, households with children aged 5 and under;   (7)            noted other eligible working-age residents, support would be given up to a maximum of 57%, depending on their level of income, household composition and level of capital;   (8)            noted that the remaining provisions of the Council’s scheme for 2026/27 will be as published on the Council’s website;   (9)            noted that the projected cost of the whole scheme is identified as £19.53 million which is £0.93 million more than the current scheme. This will be reflected in the calculation of the council tax base for 2026/27 and included within the next MTFS as part of the budget setting process; and (10)        noted that before any significant changes to the scheme reducing or removing support could be made that a statutory consultation would need to be carried out.   Options & Alternatives Considered It is a statutory requirement that Council considers and adopts a CTS scheme from 1 April 2026 and identifies the sources of funding. The options available to the Council for a CTS scheme from 1 April 2026 are to continue with the existing scheme or design and consult on an alternative, either less generous or a more generous scheme. Before any significant change can be made to the scheme there is a legislative requirement to undertake a full consultation with residents, the GLA and other stakeholders. Legislation dictates that the Council must decide on a scheme by 11 March but as the cost of the CTS scheme forms part of the budget setting process and Council Tax annual billing, approval for a new scheme would need to be made by 31 January 2026. Given these timescales, there may be insufficient time remaining to undertake a meaningful consultation and obtain approval for a new scheme to commence from 1 April 2026. Adopting a significantly different scheme without following the statutory requirements to consult would be unlawful. It is recommended that the Council continue with the current income banded scheme to help protect the most vulnerable residents in the borough whilst also maintaining a sure financial footing for the Council.