Croydon Council is proposing a public consultation on potential changes to Council Tax Support (CTS) for working-age residents. The proposal will be considered at next week’s Cabinet meeting.
The Council is required by law to review its CTS scheme each year and decide whether to retain the current scheme or make changes.
The Government has also issued formal directions to Croydon that the Council must demonstrate that it is taking all reasonable steps to improve its financial position, including properly reviewing significant areas of spending within its control.
In 2025/26, around £39m was awarded through CTS, including approximately £25m to working-age residents. Croydon’s scheme provides substantial levels of support and costs more than those operated by many other London boroughs. The Council therefore wants to examine approaches that have been introduced successfully elsewhere.
As part of its annual review, the Council is considering a range of possibilities to ensure Council Tax Support remains fair, properly targeted and sustainable. Retaining the current arrangements remains one of the choices under consideration.
Subject to Cabinet approval, a consultation would be launched later this month to gather the views of residents and others with an interest in the scheme. Responses would help shape any recommendations for changes from April 2027, with a final decision due to be considered by Full Council in February 2027.
The consultation would seek views on a number of possible changes, including reducing some levels of support and eligibility protections for certain working-age residents, changing the way income and savings are assessed, and other proposed changes to the criteria.
“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.
“Croydon’s current Council Tax Support scheme is more expensive than those operated by many other London boroughs. It is only right that we look at options that other councils have successfully introduced and consider different approaches for Croydon.
“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.”
Jason Perry, Executive Mayor of Croydon
