Brent Council is looking to reduce the cost of its Council Tax Support (CTS) scheme by £8 million in a bid to navigate an ‘incredibly challenging’ financial landscape.
The borough’s overall £16m budget gap for 2025/26 is expected to rise to around £30m by 2027/28, according to council figures, while the cost of the CTS scheme is forecast to increase from £19.9m this financial year to £21.2m in 2025/26.
In proposed changes, residents currently receiving support will lose out on their current discount. From April 1, 2025, all claimants of working age will be required to pay something towards their bill.
Pensioners will be unaffected by the changes as their support is determined by central government.
In 2024/25, a total of £32.8m of CTS is being paid to 16,833 working-age and 8,428 pension-age claimants. Under current measures, residents can claim support if they are liable to for council tax for their property; use it as their main home; and have less than £6,000 in savings – though the amount is tapered depending on earnings.
Households earning between £151 and £250 per week are currently eligible for a 30% reduction in their council tax, those earning £110 to £150 get a 50% reduction, those earning £81 to £110 get an 80% discount, and those earning less than £80 a week pay nothing.
If the proposals are approved, Brent Council will introduce a standard 35% minimum payment for working age households. The percentage of CTS they are eligible for will then be calculated based on their income.
Charges for ‘non-dependants’ – other adults aside from the main occupant – will also be simplified, with just two flat rate deductions – £8 per week for non-dependants out of work and £20 per week for non-dependants in work. Removing the need to verify income for non-dependants and reducing the administration burden will reduce costs by £700,000, according to council figures.
If the changes go ahead, a single person living in a Band D property and earning below £80 a week – who would not currently pay any council tax – will be required to start paying £45.64 a month from April 2025.
The proposal aims to reduce the total cost of the scheme by £8 million, which the council claims will deliver ‘vital savings’ of £5 million – with the remaining £3 million going towards a £1.5 million hardship fund and £1.5 million to make a mandatory contribution to the mayoral precept.
Following approval by the council’s cabinet on October 14, the plans will go out to public consultation – with a final decision expected to be made ahead of the council’s budget being agreed in February 2025.
Cabinet member for resident services and culture, Cllr Fleur Donnelly-Jackson, said: “This year, we are proposing changes to the working-age CTS scheme that will not only alleviate the administrative burdens but also deliver significant cost savings for the council. These changes reflect our broader priorities as a borough: ensuring financial sustainability, targeting support where it is needed most, and fostering a sense of collective responsibility.”
