FAQs

Council Tax Support is a locally administered scheme which reduces the Council Tax bills of residents who are least able to afford to meet their liability. 

There are two Council Tax Support schemes: one is for people above pension age and the other is for people who are below pension age (we call this ‘working age’).

The way in which Council Tax Support is calculated for pensioners is set nationally and the Council has no control about how the reduction is calculated.

The law says that: the Council must produce a scheme for working-age people; it must reconsider the scheme each year; and that if the Council is proposing to make any changes to the scheme it must carry out a consultation.

The Council has been supporting working-age households to meet their Council Tax liability since 2013 and is currently providing support up to a maximum of 85% of liability.

The cost of the scheme is increasing year-on-year. It is projected that, if the Council does not take action, it will have to spend more than £20m on the scheme in the financial year beginning April 2025. The Council cannot afford to keep the scheme running in its current form.

The Council’s proposal seeks to protect the most financially vulnerable residents through a scheme which is affordable in the current economic climate.

If we continue with the current Council Tax Support scheme in 2025/2026 it is expected to cost £20.6m. The proposed Council Tax Support scheme is projected to cost £18.29, that’s a saving of £2.31m.

People classified as being financially vulnerable will continue to receive up to a maximum of 85% reduction in their Council Tax bill depending on a person's level of income, household composition and level of capital. The Council’s scheme treats the following people as being financially vulnerable:

• Households including a child aged 5 or under;
• Households where the person claiming and/or that person’s partner has been assessed as being incapable of work or a limited capability for work.

For those not classed as financially vulnerable, support will be limited to a maximum of 57% of the Council Tax liability.

Households where neither the person applying for CTS nor their partner are in paid work will receive the maximum level of support.

All other households will receive 57%, 47%, 37%, 27% or 17% depending on the level of their earnings. 

The current scheme excludes some people from non-dependant deductions such as students and does not raise a deduction for some non-dependants. The deductions made relate to the income of a non-dependant. The new scheme proposes that:

1. There will be a reduction in support made in respect of all non-dependants;
2. Non-dependants who are not working will attract a reduction of £8.00;
3. Non-dependants who are working will attract a reduction of £20.00.

The term capital includes all monies held in your bank accounts, savings accounts, bonds, stocks, shares, crypto currency, investments and second properties.

The Council will be updating and presenting an Equalities Impact Assessment to Cabinet which will provide a detailed analysis of impact on protected groups under the Equality Act 2010, and mitigations available to address any apparent disproportionate impacts identified.  

Based on the statistical information available from those in receipt of Council Tax Support, the proposed changes impact all working age residents, 66% of whom are women, 43% are single parents. 

Ethnicity information is known for only 33.85% of cases because this information is declared on a voluntary basis. Based on statistical information available, 21% of residents in receipt of Council Tax Support are from Black British, Black Caribbean or Black African backgrounds (compared with 15% of the borough population).

33% of working-age residents are in receipt of a disability premium. Under the proposed scheme, working-age residents in receipt of a disability premium or with limited work capability are protected and will be eligible to continue to receive up to a maximum reduction of 85% as within the existing scheme, depending on changes in a person's level of income, household composition and level of capital. 

The Council aims to use the findings from this consultation to inform how we use our discretionary hardship funds to target those in need and how we help people maximise their incomes.

Yes, please look at the document entitled Example scenarios under the Documents section.  

The consultation will be launched online and will begin on the 18 October 2024. This will run until 24 November 2024. The Council will encourage participation from residents to seek their views on the proposed scheme.

Working-age residents in receipt of Council Tax Support will be contacted directly, via letter, email and text, to encourage participation.

The Council will also advertise the Council Tax Support consultation on social media channels, at libraries and via newsletters.

Please use the online consultation questionnaire to respond; however should you need a paper copy they are available on request.

To request a paper copy of the consultation questionnaire please email  Revenue.Services@walthamforest.gov.uk or call 0208 496 3000. 

No decision has been made to make any of these changes – the results of this consultation will show us how different people would be affected. We'll look very carefully at these results before making any decision.

Once the consultation period has ended the feedback will be collated and considered, alongside other information and considerations, at a meeting of the Council’s Cabinet on 3 December 2024. 

If changes to the scheme are proposed, the new scheme will then go to Council on 12 December 2024 for approval before it goes live from April 2025.