Council Tax Support Scheme Consultation

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We are proposing changes to Hounslow's Council Tax Support scheme to take effect from April 2025.

We want Hounslow residents to review our proposals and share their views through the consultation below by 5 p.m. on Wednesday 27th November 2024.


Overview

The Council Tax Support scheme helps people on a low-income or benefits with financial assistance towards their Council Tax bill. We review this scheme every year.

We are proposing changes to our Council Tax Support scheme to take effect from April 2025 and encourage anyone who gets Council Tax support, or anyone who has a view on how it works, to respond to this consultation and feed back on the proposed changes and how they could effect you.


What might this change mean for you?

The proposed changes mean some residents could get more financial assistance with their Council Tax and that some would get less. Residents who might struggle to pay more towards their bill may be able to apply to a Hardship Fund which will provide financial assistance. More details on the Hardship Fund are below.

The proposed changes seek to ensure families, larger households and carers get vital support they need. They only apply to working age residents, as the cost of the working age scheme is met from the Council's budget. Pensioners or care leavers under the age of 21 will not be affected by the changes.


Why is the Council considering these changes to the Council Tax Support scheme?

Since 2012, Council funding from Central Government has reduced by a third. During that time the total cost of Hounslow's Council Tax Support scheme will have grown to around £27.5m by April 2025.

At July's Cabinet meeting Hounslow's financial strategy showed a very challenging financial position for the Council, with a forecast budget gap of £30m by the end of the 2025/26 financial year. This can be seen against a background of increasing demand for services and cost increases due to high inflation rates over recent years.

The Council is developing a range of measures to balance its 2025/26 budget.

The proposed changes to the Council Tax Support scheme will help the Council save £3.5m - £4m, reduce the £30 million funding shortfall and ensure vital services are protected.

Our current Council Tax Support scheme is generous. We have a high proportion of recipients who get full support and pay no Council Tax. This has steadily increased, with a 12% increase in the last five years, but this makes it unsustainable for the Council to leave the scheme as it is now.

If Hounslow Council doesn’t achieve the savings required by changing its Council Tax Support scheme, other difficult measures will need to be considered, including:

  • Using reserves to retain the current scheme, but this would reduce the funding available for improvements and - as reserves can only be spent once - this is not sustainable in the medium term.
  • Increasing Council Tax. The Council has increased Council Tax by the maximum amount allowed each year since 2021/22 (4.99%) for all residents*. Each 1% increase brings in an additional £1.3m. The Government sets a limit each year on how much local authorities can increase Council Tax. In recent years this has been set at 2.99% with an additional 2% ringfenced for Adult Social Care. If the Council proposes to increase Council Tax by more than this it must hold a referendum.
  • Cutting Council services (such as waste and recycling collections, Children's’ and Adults’ social care, parks and leisure, libraries, street and road maintenance) for all residents.
  • A combination of the above.

Please note - the £3.5-£4m proposed savings represent less than 15% of the £30m savings required for 2025/26. The Council is considering other measures to close the budget gap and ensure we set a balanced budget.

The proposed changes are intended to make sure families, larger households and carers receive the vital support they need, while reducing the overall cost of the scheme.

Several other London boroughs are also exploring changes to their Council Tax Support schemes and others have already implemented similar changes.

We know that paying more Council Tax will be difficult for many of our residents and, as part of the proposals, we will allocate a Hardship Fund to support residents who might struggle financially as a result of the proposed changes, for an interim period. We also want your views on how this extra support could work.

* Please note these numbers are for illustrative purposes only as the Council has not yet finalised the increase in Council Tax for the 2025/26 year. The final amount of the increase will also be dependent on the Greater London Authority's Budget Setting process.


What are the proposed changes?

We currently have a 'one-size-fits-all' approach that only looks at household earned-income and does not take account of household size. That means, for example, that a single person with an income of £200/month is treated the same as a large family with the same income. We propose changing that so the scheme considers household size and caring responsibilities, as well as earned income.

The proposed changes are summarised below:

Current SchemeProposed Change

Some working-age residents who get Council Tax Support do not contribute to their Council Tax.

All working-age residents will contribute towards their Council Tax.

Households make a set contribution to their Council Tax based on earnings.

Households receive a percentage reduction on their Council Tax based on earned income and household size.

Carers (those who receive Carer's Allowance) do not receive any additional support.

The Council will pay 90% towards Carers’ Council Tax bill.

The scheme does not factor in any salary increases related to inflation.

If your salary increases in line with inflation, this will be reflected in the earnings bands that decide how much Council Tax Support you receive.

No dedicated Hardship Fund is available to residents in addition to the Council Tax Scheme.

A Hardship Fund will be available to those who experience financial difficulty because of the changes.



If these changes are introduced how much Council Tax might you have to pay?

The amount of Council Tax you are asked to pay could change. (See the table in the 'Helpful Information' to see what the changes could mean for you or use our Council Tax Calculator.)

We have included case study examples of how this proposal may work for some households (scroll down if you are on a phone).

Please be aware that while figures used to calculate these are as accurate as can be at this time, they are also illustrative until final numbers are determined by both the Council and the Greater London Assembly.

The handy calculator can help you see how much support you may receive towards your Council Tax bill. It is easier to use if you check the guidance notes first, so please see 'Helpful Information'.

What does this mean for you?

Click here for our Council Tax Support Calculator



Additional support being considered

If you are impacted by changes proposed to Council Tax Support and might struggle to pay a new, increased Council Tax bill, you will be able to apply to a Hardship Fund.

The Council proposes to allocate £2m from reserves to create this Hardship Fund which is expected to be available from 1st April 2025 - 31st March 2027.

Applications to the Fund will be made online, with support available if you need help, and it is proposed to award support following an assessment of any applicant's financial position and to ensure you are getting all other benefits you are entitled to.

You may be eligible to claim a Hardship payment if you are:

• Registered as a Council taxpayer

• In receipt of Council Tax Support and adversely impacted by proposed changes.

• Actively taking steps to address your financial hardship (through trying to agree payment plans, seeking support from Citizens Advice or taking steps to increase earnings)

We are exploring two models to run the Hardship Fund:

  • Option 1 - we offset support against your Council Tax bill.
  • Option 2 - we provide you with other forms of financial support, such as a payment against a utility bill or supermarket vouchers.

Please see below for an example of these two options:

ExampleOption 1
Offset support against
Council Tax Bill
Option 2
Provide other financial support

Sheena is single and lives in a Band D property. She earns £475 per month.

Under the current scheme she contributes £40 per month towards her Council Tax.

Under the proposed changes, she will pay £52.26 towards her Council Tax (an increase of £12.26 per month).

Due to the increase, her gas and electricity account is in arrears by £250.

Sheena applies to the Hardship Fund and, after the financial assessment, is eligible for support.

A total sum of £147.12 (£12.26 x 12 months) will be offset against Sheena’s Council Tax bill.

No payment is made towards her utility bills.


Sheena applies to the Hardship Fund and, after the financial assessment, is eligible for support.

A payment of £250 is made from the Fund to her energy provider to clear her arrears.

No change is made to Sheena’s Council Tax bill.




Give us your views

Please complete the consultation. Your views are really important, and really matter, in helping us shape the Council Tax Support scheme from April 2025.

You can complete an online questionnaire, or attend one of our events and complete an online or paper copy there.

There will be a number of special events with local groups (watch out for more details on this page). We are keen for you to have opportunities to meet officers and to understand the proposals.

The consultation will take about 15 minutes to complete.

Complete the consultation below!

A link to the consultation where you can share your views on our proposals is below. You need to log in or register to use Let’s Talk, but it only takes two minutes to register.

Why do we ask you to register?

Using registration helps us safeguard your results. The information we gather should come from our residents and stakeholders, not from bots.


Need some help?

Here is an Easy Read copy of this information.

Ask us for a paper copy or a large print copy of the consultation, or if you want a translated copy of the consultation either by email at consult@hounslow.gov.uk or calling on 020 8583 4751. You can also pick up and return a paper copy of the survey via any library in the borough.

Talk to us about the proposals

Every week there will be daytime and evening opportunities for you to speak to us complete the consultation. Look for the ‘Come and Meet us’ section on this page to find out where we will be.


Please ensure you have your completed consultation back with us by 5pm, Wednesday 27th November 2024.

Thank you for all your feedback, your views are important and will help us shape the Council Tax Support Scheme and the Hardship Fund. Your help is much appreciated.

We are proposing changes to Hounslow's Council Tax Support scheme to take effect from April 2025.

We want Hounslow residents to review our proposals and share their views through the consultation below by 5 p.m. on Wednesday 27th November 2024.


Overview

The Council Tax Support scheme helps people on a low-income or benefits with financial assistance towards their Council Tax bill. We review this scheme every year.

We are proposing changes to our Council Tax Support scheme to take effect from April 2025 and encourage anyone who gets Council Tax support, or anyone who has a view on how it works, to respond to this consultation and feed back on the proposed changes and how they could effect you.


What might this change mean for you?

The proposed changes mean some residents could get more financial assistance with their Council Tax and that some would get less. Residents who might struggle to pay more towards their bill may be able to apply to a Hardship Fund which will provide financial assistance. More details on the Hardship Fund are below.

The proposed changes seek to ensure families, larger households and carers get vital support they need. They only apply to working age residents, as the cost of the working age scheme is met from the Council's budget. Pensioners or care leavers under the age of 21 will not be affected by the changes.


Why is the Council considering these changes to the Council Tax Support scheme?

Since 2012, Council funding from Central Government has reduced by a third. During that time the total cost of Hounslow's Council Tax Support scheme will have grown to around £27.5m by April 2025.

At July's Cabinet meeting Hounslow's financial strategy showed a very challenging financial position for the Council, with a forecast budget gap of £30m by the end of the 2025/26 financial year. This can be seen against a background of increasing demand for services and cost increases due to high inflation rates over recent years.

The Council is developing a range of measures to balance its 2025/26 budget.

The proposed changes to the Council Tax Support scheme will help the Council save £3.5m - £4m, reduce the £30 million funding shortfall and ensure vital services are protected.

Our current Council Tax Support scheme is generous. We have a high proportion of recipients who get full support and pay no Council Tax. This has steadily increased, with a 12% increase in the last five years, but this makes it unsustainable for the Council to leave the scheme as it is now.

If Hounslow Council doesn’t achieve the savings required by changing its Council Tax Support scheme, other difficult measures will need to be considered, including:

  • Using reserves to retain the current scheme, but this would reduce the funding available for improvements and - as reserves can only be spent once - this is not sustainable in the medium term.
  • Increasing Council Tax. The Council has increased Council Tax by the maximum amount allowed each year since 2021/22 (4.99%) for all residents*. Each 1% increase brings in an additional £1.3m. The Government sets a limit each year on how much local authorities can increase Council Tax. In recent years this has been set at 2.99% with an additional 2% ringfenced for Adult Social Care. If the Council proposes to increase Council Tax by more than this it must hold a referendum.
  • Cutting Council services (such as waste and recycling collections, Children's’ and Adults’ social care, parks and leisure, libraries, street and road maintenance) for all residents.
  • A combination of the above.

Please note - the £3.5-£4m proposed savings represent less than 15% of the £30m savings required for 2025/26. The Council is considering other measures to close the budget gap and ensure we set a balanced budget.

The proposed changes are intended to make sure families, larger households and carers receive the vital support they need, while reducing the overall cost of the scheme.

Several other London boroughs are also exploring changes to their Council Tax Support schemes and others have already implemented similar changes.

We know that paying more Council Tax will be difficult for many of our residents and, as part of the proposals, we will allocate a Hardship Fund to support residents who might struggle financially as a result of the proposed changes, for an interim period. We also want your views on how this extra support could work.

* Please note these numbers are for illustrative purposes only as the Council has not yet finalised the increase in Council Tax for the 2025/26 year. The final amount of the increase will also be dependent on the Greater London Authority's Budget Setting process.


What are the proposed changes?

We currently have a 'one-size-fits-all' approach that only looks at household earned-income and does not take account of household size. That means, for example, that a single person with an income of £200/month is treated the same as a large family with the same income. We propose changing that so the scheme considers household size and caring responsibilities, as well as earned income.

The proposed changes are summarised below:

Current SchemeProposed Change

Some working-age residents who get Council Tax Support do not contribute to their Council Tax.

All working-age residents will contribute towards their Council Tax.

Households make a set contribution to their Council Tax based on earnings.

Households receive a percentage reduction on their Council Tax based on earned income and household size.

Carers (those who receive Carer's Allowance) do not receive any additional support.

The Council will pay 90% towards Carers’ Council Tax bill.

The scheme does not factor in any salary increases related to inflation.

If your salary increases in line with inflation, this will be reflected in the earnings bands that decide how much Council Tax Support you receive.

No dedicated Hardship Fund is available to residents in addition to the Council Tax Scheme.

A Hardship Fund will be available to those who experience financial difficulty because of the changes.



If these changes are introduced how much Council Tax might you have to pay?

The amount of Council Tax you are asked to pay could change. (See the table in the 'Helpful Information' to see what the changes could mean for you or use our Council Tax Calculator.)

We have included case study examples of how this proposal may work for some households (scroll down if you are on a phone).

Please be aware that while figures used to calculate these are as accurate as can be at this time, they are also illustrative until final numbers are determined by both the Council and the Greater London Assembly.

The handy calculator can help you see how much support you may receive towards your Council Tax bill. It is easier to use if you check the guidance notes first, so please see 'Helpful Information'.

What does this mean for you?

Click here for our Council Tax Support Calculator



Additional support being considered

If you are impacted by changes proposed to Council Tax Support and might struggle to pay a new, increased Council Tax bill, you will be able to apply to a Hardship Fund.

The Council proposes to allocate £2m from reserves to create this Hardship Fund which is expected to be available from 1st April 2025 - 31st March 2027.

Applications to the Fund will be made online, with support available if you need help, and it is proposed to award support following an assessment of any applicant's financial position and to ensure you are getting all other benefits you are entitled to.

You may be eligible to claim a Hardship payment if you are:

• Registered as a Council taxpayer

• In receipt of Council Tax Support and adversely impacted by proposed changes.

• Actively taking steps to address your financial hardship (through trying to agree payment plans, seeking support from Citizens Advice or taking steps to increase earnings)

We are exploring two models to run the Hardship Fund:

  • Option 1 - we offset support against your Council Tax bill.
  • Option 2 - we provide you with other forms of financial support, such as a payment against a utility bill or supermarket vouchers.

Please see below for an example of these two options:

ExampleOption 1
Offset support against
Council Tax Bill
Option 2
Provide other financial support

Sheena is single and lives in a Band D property. She earns £475 per month.

Under the current scheme she contributes £40 per month towards her Council Tax.

Under the proposed changes, she will pay £52.26 towards her Council Tax (an increase of £12.26 per month).

Due to the increase, her gas and electricity account is in arrears by £250.

Sheena applies to the Hardship Fund and, after the financial assessment, is eligible for support.

A total sum of £147.12 (£12.26 x 12 months) will be offset against Sheena’s Council Tax bill.

No payment is made towards her utility bills.


Sheena applies to the Hardship Fund and, after the financial assessment, is eligible for support.

A payment of £250 is made from the Fund to her energy provider to clear her arrears.

No change is made to Sheena’s Council Tax bill.




Give us your views

Please complete the consultation. Your views are really important, and really matter, in helping us shape the Council Tax Support scheme from April 2025.

You can complete an online questionnaire, or attend one of our events and complete an online or paper copy there.

There will be a number of special events with local groups (watch out for more details on this page). We are keen for you to have opportunities to meet officers and to understand the proposals.

The consultation will take about 15 minutes to complete.

Complete the consultation below!

A link to the consultation where you can share your views on our proposals is below. You need to log in or register to use Let’s Talk, but it only takes two minutes to register.

Why do we ask you to register?

Using registration helps us safeguard your results. The information we gather should come from our residents and stakeholders, not from bots.


Need some help?

Here is an Easy Read copy of this information.

Ask us for a paper copy or a large print copy of the consultation, or if you want a translated copy of the consultation either by email at consult@hounslow.gov.uk or calling on 020 8583 4751. You can also pick up and return a paper copy of the survey via any library in the borough.

Talk to us about the proposals

Every week there will be daytime and evening opportunities for you to speak to us complete the consultation. Look for the ‘Come and Meet us’ section on this page to find out where we will be.


Please ensure you have your completed consultation back with us by 5pm, Wednesday 27th November 2024.

Thank you for all your feedback, your views are important and will help us shape the Council Tax Support Scheme and the Hardship Fund. Your help is much appreciated.

  • Council Tax Support Scheme consultation

    Please register on Let's Talk to complete this consultation (or sign in if you have previously registered). Registration takes about two minutes. By asking people to register we are keeping your views safe. If you prefer not to register please contact us at consult@hounslow.gov.uk and we can send you a paper copy for you to return to us. 

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Page last updated: 11 Nov 2024, 01:59 PM