New Council Tax Support scheme agreed at Full Council

A new Council Tax Support scheme for working-age residents of Waltham Forest will be introduced from April 2025, following a decision by Full Council on Thursday 12 December. The decision follows a public consultation with residents in autumn 2024.

Council Tax Support is a scheme to reduce Council Tax bills for people on low income. Changes to the scheme will not affect Council Tax Support for pensioners, which is set nationally by central government.

The new income-banded scheme will, depending on a person’s income, household composition and level of capital, provide support of up to 85% for working-age residents in specific financially vulnerable groups. Households classified as financially vulnerable for the purpose of this scheme are those on the lowest income band, and in which: the household includes a child aged 5 or under; or the person claiming, or that person’s partner, has been assessed as being incapable of work or having a limited capability for work.

For other eligible working-age residents, support will be given up to a maximum of 57%, also depending on their income, household composition and level of capital.

The Council will continue to use its discretionary hardship fund to support those experiencing financial hardship, including residents who may be particularly impacted by the new scheme. Individuals and families will also be supported to maximise their income and access both targeted and universal services, including the use of early years support.

In April 2023, the Council introduced temporary changes to the Council Tax Support scheme to give extra support to residents, to help offset the worst effects of the cost-of-living crisis. Continuing this level of extra support would cost £20.6m next year, £3.5m more than in 2022/23, before the additional support was introduced. This extra cost is no longer viable in the Council’s current financial position. With growing numbers of vulnerable children, adults and households needing support in Waltham Forest, and in the context of significant financial pressures faced by the Council, the new scheme will balance affordability with targeting support to those that need it most.

Cllr Grace Williams, Leader of Waltham Forest Council, said:

"Over the last two years, we’ve run an expanded Council Tax Support scheme to help residents on low income over a particularly difficult time. We recognise that people are still struggling, but the scale of financial challenges the Council faces means making some really difficult decisions so we can continue to run vital services for residents across the borough. This change prioritises giving financial support for Council Tax to people who need it most, while making the necessary savings. 

"We are committed to doing everything we can to help our residents in financial hardship to access existing financial support schemes and providing early help support for residents who may be financially impacted, including helping people secure as much income as possible, access skills and jobs and manage debt."

The new Council Tax Support scheme will be introduced from April 2025. Residents in receipt of Council Tax Support will receive a letter informing them if they will be affected by the changes in early 2025, before the changes are introduced.

438 people took part in the consultation, which ran from 18 October to 24 November 2024. The Council encouraged participation from residents to seek their views on the scheme: working-age residents in receipt of Council Tax Support were contacted directly, via letter, email and text, and the consultation was also advertised on social media channels, at libraries and via newsletters. See the full results of the consultation in the Cabinet report.

The council is currently forecasting the need to make savings of between £18m and £24m over the next three years. At the same time, the costs of adult social care, children’s services and temporary accommodation continue to rise. The council is caring for 850 more adults than it was in 2019, an increase of nearly a third; over the same period, the number of children needing Education, Health and Care Plans has risen by 85 per cent, to 3,471. In the past year alone, Council expenditure on temporary accommodation has risen by 68 per cent. In this difficult financial position, it is essential that the council chooses the most cost-effective way to continue providing vital services. Read more about the council’s financial challenges.