Waltham Forest Council is consulting on proposed changes to Council Tax Support that could reduce the maximum help available to some working-age households from April 2027, while increasing support for others under a redesigned earnings-based system.
The council’s preferred option would end the current special top rate of 85% and replace it with a maximum rate of 75%. It would also remove extra protection for some households with a child aged five or younger, while moving from five earnings groups to seven in an effort to make changes in support more gradual as income rises.
No final decision has been made. The consultation began on 24 September and is due to close on Friday 6 November 2026. Cabinet is expected to consider the proposals in December, with Full Council due to make the final decision later that month. If approved, the new scheme would begin on 1 April 2027.
Who would be covered by the proposal
The consultation applies only to working-age households receiving, or potentially eligible for, Council Tax Support in the London Borough of Waltham Forest. Pension-age households are outside the proposal because their rules are set nationally.
Council Tax Support is a local scheme that helps people on low incomes pay part of their Council Tax bill. The amount of help depends on household circumstances and the rules in force at the time.
Under the current Waltham Forest scheme, the highest level of support can cover up to 85% of a person’s Council Tax bill for certain protected working-age households. Those groups include some residents receiving Employment and Support Allowance, Carer’s Allowance, or parts of Universal Credit linked to caring responsibilities or being less able to work. The current protected rate can also apply to households responsible for a child aged five or younger.
Other qualifying working-age households can receive a lower maximum level of support. Under the proposed scheme, every qualifying working-age household with no earnings could receive up to 75% support, meaning some households not currently receiving the special protected rate could gain.
Estimated winners and losers
The council estimates that 2,343 working-age households would receive more help under the preferred scheme, while 7,079 would receive less. Within those figures, 1,734 households are estimated to gain more than £5 a week, and 534 households are estimated to lose more than £5 a week.
Those figures are estimates rather than final outcomes for individual households. The effect on any resident would depend on factors including earnings, who lives in the property, whether another adult is counted as a non-dependant, and whether disability-related rules apply.
The proposed move to seven earnings groups is intended to reduce sharp changes in support when a household’s earnings change. The council also proposes keeping current deductions where another adult lives in the home, while not applying those deductions in some cases involving students or disability.
The proposal would mean households currently receiving the protected 85% rate would receive less support if they remained eligible under the new rules. By contrast, households with no earnings that do not currently qualify for the special protection could see their maximum support rise from 57% to 75%.
Cost and hardship fund
The council estimates that keeping the current scheme would cost £22.16 million in 2027/28. The preferred scheme is estimated to cost £21.19 million, about £0.97 million less than retaining the current arrangements.
The authority says it wants the scheme to be fairer, simpler to understand and less resource-intensive to administer. It also says the scheme must remain affordable, and that providing more support would require money that could otherwise be spent on services, raised through Council Tax, or drawn from reserves.
A £750,000 hardship fund is planned to remain in place. That fund is intended to provide extra help for residents most affected by any changes, although the final details would be decided after consultation responses and the likely impact on residents have been considered.
Decision expected in December
Residents, people receiving support, landlords, charities, community groups, housing associations and others with an interest in the scheme can take part in the consultation. The council is asking for views on the proposal, how it might affect people and how any problems could be reduced.
The current Council Tax Support scheme will remain in place while the consultation and decision process continue. Any change would require approval by Full Council and would not take effect before 1 April 2027.
