Lambeth council is planning to reduce its tax support scheme by 20 percent in order to balance its budget. The local authority is seeking input from residents regarding this proposal through a consultation process. If approved, the changes would go into effect on April 1, 2025.
The proposed alterations to Lambeth’s Council Tax Support (CTS) scheme would impact around 8,000 individuals in the borough. During the pandemic and the current cost of living crisis, the council had been providing 100 percent council tax relief to residents, costing them £28.3 million annually.
Under the new plan, the maximum level of CTS would be reduced by 20 percent. This means that individuals who currently have their entire council tax covered by the council would need to pay 20 percent of the bill starting from April 2025. However, not all households receiving council tax support would be affected by this change.
Out of the 24,000 households receiving support, approximately 16,600, including 8,300 pensioners, would be exempt from the reduction due to being part of a protected group. The council is also considering providing “discretionary protection” for disabled applicants, carers, families impacted by the overall benefit cap, war widows and widowers.
Young people leaving care have been exempt from paying council tax until the age of 25 since 2018, and this exemption would continue under the new scheme. Cllr David Amos, Lambeth’s Cabinet Member for Finance, highlighted that despite the proposed changes, the council’s CTS scheme would still be one of the most generous in London, with Lambeth maintaining one of the lowest council tax rates in the city.
The council faces the challenge of needing to save £69 million over the next four years due to reduced government funding and increased demand for services like temporary accommodation. Cllr Amos emphasized the necessity of making tough decisions to balance the council’s finances while prioritizing support for those in need.
In addition to the CTS cuts, the council is taking action to address overspending by reviewing recruitment processes, reducing non-essential expenditures, and ending agency placements and consultancy contracts. The public consultation on the proposed changes is currently ongoing and will continue until February 10, 2025.
Residents are encouraged to participate in the consultation by sharing their views on the Council Tax Support Scheme 2024 Survey. The final decision on the future of the CTS scheme will be made by Lambeth councillors after reviewing the consultation findings, with the new scheme expected to be implemented on April 1, 2025.
