More than 19,000 low-income and disabled Croydon residents could face increases in their monthly bills under proposed cuts to the borough’s £39 million-a-year council tax support scheme.
Croydon’s Cabinet will decide today (Wednesday 23 September) whether to launch a statutory six-week consultation on the changes. If approved, the consultation would run ahead of a final decision by Full Council in February 2027, with any changes taking effect in April 2027.
Under the proposals, non-working disabled claimants face seeing their maximum council tax discount slashed from 100 per cent down to 50 per cent. Single parents with children under five could see their maximum support drop from 80 per cent to 50 per cent, while general working-age claimants without disabilities could see support fall from 75 per cent to 50 per cent.
The council is also considering lowering the property band cap from Band D to Band C, meaning people in higher-banded homes would receive less support.
Croydon currently spends roughly £39m annually on council tax relief, with £25m spent on working-age residents. If implemented, the changes would leave Croydon with the joint-lowest level of council tax support in London, according to the Local Democracy Reporting Service.
The council says it is seeking £3.6m to £12m in annual savings under the “Best Value” intervention mandated by government-appointed commissioners. Finance officers have warned the collection rate could fall from 98 per cent to 97 per cent if the changes go ahead.
Executive Mayor Jason Perry said: “As part of the Best Value intervention that the Council is under, we must review all spending within our control. Council Tax Support is one of those areas – we need to make sure we are providing the right support to the people who need it most.”
“It is only right that we look at options that other councils have successfully introduced and consider different approaches for Croydon,” he added. “No decisions have yet been made on the future of the scheme. Should Cabinet approve the consultation it will provide a genuine opportunity for people to shape future recommendations.”
Reporting based on: Croydon Council: “Cabinet to consider consultation on Council Tax Support scheme”, 16 September 2026, via MyLondon (Local Democracy Reporting Service), 22 September 2026.
