Council Tax Reduction Scheme
Councils are currently reviewing and reforming Council Tax Reduction Schemes to address financial pressures and ensure sustainability.
Wandsworth Council is reforming its Council Tax Reduction scheme, with proposals discussed by the Finance Overview and Scrutiny Committee on October 8, 2026. The current scheme is projected to cost £14 million annually by 2030/31, and proposed changes aim to reduce this to £7.1 million by 2030/31. Kensington and Chelsea Council also considered cuts to its scheme for working residents in October 2025, due to financial pressures.
Hillingdon Council implemented changes to its scheme in April 2026, applying non-dependent deductions to all working-age claimants, which an equality impact assessment acknowledged would negatively impact vulnerable residents. Haringey Council launched a £66,000 Council Tax Hardship Fund in December 2025 to support residents. Wandsworth Council's Cabinet is scheduled to discuss the topic on October 12, 2026.
Council Tax Reduction Schemes are administered by local authorities to reduce the Council Tax liability for eligible working-age residents on low incomes. Councils face significant financial challenges, with Richmond upon Thames Council warning of a £70 million budget gap by 2028/29 and Newham Council projecting a £53 million shortfall for 2026/27.
Key facts
- Wandsworth Council's Finance Overview and Scrutiny Committee discussed proposals to reform its Council Tax Reduction scheme on October 8, 2026. Source
- Wandsworth's proposed Option 3 aims to reduce the working-age scheme cost to £7.1 million by 2030/31. Source
- Hillingdon Council implemented changes to its Council Tax Reduction scheme in April 2026. Source
- Haringey Council launched a Council Tax Hardship Fund with an initial allocation of £66,000 in December 2025. Source
- Kensington and Chelsea Council's Leadership Team discussed consulting on changes to its scheme from April 2026 in October 2025. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 9 October 2026. Spotted a mistake? Email community@opencouncil.network.