Hillingdon families with more than two children could soon pay more council tax as the council considers withdrawing certain discounts. Like many local authorities in London, Hillingdon Council has a Council Tax Reduction (CTR) scheme to cut the cost for certain groups, however with budgets under increasing pressure those discounts may be tweaked or withdrawn totally to raise more money.
The council, which has launched a consultation on the proposed changes before rolling them out, says: “The proposed changes aim to reduce costs fairly because rising demand is putting a lot of pressure on the limited budget.”
The CTR in Hillingdon is a banding scheme supporting working age people on low income and those with children. Pensioners who also currently receive a discount are expected to be exempt from all changes proposed as they are protected from any impact by legislation.
People in higher-value properties
The largest change to the scheme will affect those living in higher-value properties who currently receive a discount. Under the current scheme, CTR is based on full council tax liability. This means if someone lives in a property that is Band E – Band F their CTR is calculated against the actual, higher council tax charge for that band.
The new plan would cap CTR calculations at the Band D rate, which is lower. So, even if someone lives in a Band F property, their CTR will be calculated as if they lived in a Band D home. This means their discount will be smaller, and their council tax bill would go up.
For example, a working age couple with four children living in a Band F property in receipt of Universal Credit would see their Council Tax Reduction support drop by £11.91. The council say this change will affect fewer than 500 households, and the change will not apply to people in receipt of a qualifying disability benefit.
Vulnerable household support changes
Hillingdon Council is also proposing changes to the support received by vulnerable households, particularly those with disabilities. Currently, families receiving benefits such as the Disability Living Allowance or Personal Independent Payments are placed in a special group that allows them to receive a larger reduction in council tax.
Under the new scheme, these households would still receive help, however they would be moved into a standard council tax banding system. This means their eligibility will not be based on their overall income, excluding their disability benefits from calculations.
The council says the plans would provide a more standardised approach, however it also means these households will see their level of council tax support drop from 90% to 80% over the next four years. For example, a single parent receiving support for a disabled child might find that their council tax reduction decreases – meaning they have to pay more.
Other changes
There are a number of other changes too. Families with more than two children who were protected from benefit cuts under a 2020 Council Tax Reduction scheme will lose this protection after March 2025. It is expected to affect fewer than 30 households.
The council also proposes raising the minimum CTR award. Currently, if you are eligible for a weekly reduction in council tax of £2 you actually don’t get anything off your bill as it’s deemed to little an amount. This would increase to £3 meaning applicants with reductions below £3 per week will receive no support.
Another proposal affects young people who have been in care, but it’s the one aspect that would actually be an improvement for some residents. Under changes proposed, they would not have to pay any council tax until they are 21. They currently must pay council tax from 18 albeit with support. The idea is to make it easier for care leavers to handle their finances and get to grips with living independently.
Hillingdon residents can have their say on the plans until Wednesday, December 11. More information on the proposals is available on the council’s website.
Similar changes are being proposed outside of Hillingdon. In neighbouring Hounslow changes are being proposed that would see every working age person paying something towards council tax, with other people’s discounts also reduced to raise an extra £30million. Brent Council is doing the same thing, with its proposed changes expected to raise a further £8million for its budget.
Philip is a Local Democracy Reporter covering Ealing, Hillingdon and Hounslow, with a focus on council decisions, housing, planning, licensing and community stories across west London.
