Residents will be asked their views on proposed changes to Brent’s Council Tax Support scheme following the Cabinet’s approval for the consultation today (14 October).
Brent has created one of the most generous Council Tax Support Schemes in London. However, this scheme is no longer affordable or sustainable given the huge financial pressures the local authority is facing.
Like the vast majority of local authorities, Brent is facing an extremely challenging financial situation. On top of £222m in cuts made since 2010, a further £16m must be saved in 2025/26 to balance the budget. To help achieve around £5m in net savings, the council is exploring potential changes to bring Brent’s Council Tax Support Scheme more into line with other London boroughs while ensuring that its limited resources are targeted at the people most in need.
The proposed changes being consulted on would only affect working-age households. Pensioners are exempt and will continue to be assessed under the existing system, which can cover up to 100% of their Council Tax bill.
The consultation will begin on 21 October and run until 15 December 2024, with residents invited to share their views on two options:
Making changes to the existing scheme
- Every household (apart from pensioners) will need to pay something towards their Council Tax bill (a minimum of 35%) with reduced levels of support across all incomes. Support will still be available for the borough’s most vulnerable residents, including those with exceptional circumstances.
- To introduce two flat-rate deductions to Council Tax Support for households with non-dependents (£8 per week deduction for non-dependents who are "out of work and £20 per week deduction for non-dependents who are "in work”) to replace the current system of varying rates based on income.
- To limit backdating of new Council Tax Support claims to one month, in line with Housing Benefit and Universal Credit.
Keep the existing scheme
Make no changes and keep the current Council Tax Support scheme in place. This would require finding £5million in savings from other council services. The council needs to save £16million by 2025/26 to balance the budget, and leaving the scheme unchanged will require more severe cuts in other service areas. A draft budget outlining the full suite of proposed savings will be published in November.
