Town Hall to maintain ‘generous’ council tax relief for poorest households

Camden Council has committed to keeping council tax exemptions in place for thousands of residents, as other authorities plan to scrap the relief.

Last night, the resources and corporate performance scrutiny committee pored over a new report from the borough’s finance chief, Cllr Camron Aref-Adib, which stated the intention to maintain the Town Hall’s “generous” council tax support (CTS) scheme for the next financial year.

The report also proposes uplifting income bands based on the recently-raised London Living Wage (LLW), which now stands at £13.85 per hour following a recent hike in the government’s Autumn Budget.

This means those low-income individuals and households who now earn slightly more due to the wage increase will still qualify for support, regardless of the LLW’s adjustment.

Cllr Aref-Adib’s report stated: “Against a backdrop of families continuing to struggle financially, Camden’s commitment to the scheme continues whilst many councils both in London and across the country are having to reduce levels of support under their schemes in response to wider budget pressures.”

Yesterday it was reported that Greenwich Council in south London plans to remove its universal 100 per cent discount, first introduced in 2020, in a bid to save £1 million.

In July, Somerset Council began consulting on proposed changes to its council tax discount scheme which would see some of the county’s low-income residents lose their exemption.

Council tax in England is set to rise by up to five per cent in April, meaning the average household is facing an increase of more than £100 to next year’s council tax bill.

According to Camden Council data, more than 16,000 households, including over 5,300 pensioners, currently receive 100 per cent council tax relief.

Others who are fully exempt are:

• Students;
• Care leavers
• Foster carers
• Carers supporting vulernable people in their own homes
• Severely mentally impaired individuals
• War widows, widowers and disabled veterans
• Armed forces personnel (in certain situations)

Non-pensioner recipients also include all those people with weekly earnings less than £110.79, or eight hours pay at the London Living Wage.

Residents who earn between £110.80 and £221.59 per week may have their council tax bills reduced by up to 85 per cent, depending on whether they have children, are disabled or have caring responsibilities.

Parents of at least one child who earn more than a full week’s pay at the London Living Wage get a 15 per cent reduction, while disabled people or carers who earn the same can receive a 30 per cent cut to their council tax.

Documents reveal there are 22,271 individual recipients of CTS in the borough. Kilburn is home to the highest number of beneficiaries (2,071), and Frognal has the lowest (317).

The Town Hall has revealed it expects a budget overspend of £19.3 million for the current financial year, mainly driven temporary accommodation but also the cost of children’s social care and inflationary pressure.

Camden also plans to invest £2 million in its ‘Cost of Living Crisis Fund’ for those most in need, along with £4 million for the council’s voluntary and community sector partners.

The report states that the CTS scheme will be reviewed once again next year.

Cllr Aref-Adib’s proposals are due to be discussed at tomorrow’s cabinet meeting.