Croydon Council Tax Hardship Fund 2026/27: Who Can Apply and How
For other working-age claimants, Croydon's standard Council Tax Reduction scheme caps support at 75% — meaning you still owe at least 25% of your bill even at the lowest income band. For households in severe financial distress, that remaining 25% can be impossible. Croydon runs two separate hardship mechanisms to bridge this gap, but the eligibility rules are tighter than most people expect.
The Council Tax Hardship Scheme 2026/27
This is Croydon's formal hardship fund, operated under Section 13A(1)(c) of the Local Government Finance Act 1992. It has explicit eligibility criteria and weekly income caps by household size.
Who qualifies:
- You must be liable for Council Tax at your sole or main residence in Croydon.
- You must have recourse to public funds.
- Your household net weekly income must not exceed the cap for your household type.
- Critical exclusion: single adults without dependants are excluded from the Hardship Scheme entirely. The council expects single-person households to rely on the standard CTS scheme.
2026/27 income caps:
| Household Type | Max Weekly Income |
|---|---|
| Single adult with 1 child | £500 |
| Single adult with 3+ children | £600 |
| Couple, no children | £500 |
| Couple with 1 child | £550 |
| Couple with 2+ children | £600 |
| Disabled household, no children | £500 |
| Disabled household with 1 child | £550 |
| Disabled household with 2+ children | £600 |
A "disabled household" means any household where the applicant, partner, child, or resident dependent has qualifying disability status.
Awards are credited directly to your Council Tax account to reduce arrears — there's no cash payment. Applications go through a dedicated online hardship portal on Croydon's website.
Section 13A Discretionary Relief
Separate from the Hardship Scheme, Croydon can grant one-off emergency relief under Section 13A(1)(c) for residents facing extreme financial crisis. This is more flexible but also more discretionary — there are no published income caps or automatic eligibility criteria.
To apply, you submit a detailed application form to [email protected] with:
- A full explanation of your financial circumstances
- Supporting financial statements
- Evidence of the crisis (redundancy notice, medical documentation, etc.)
The council assesses each case individually. There's no guarantee of an award, and processing times vary.
Which One Should You Apply For?
If you're a household with dependants and your income is below the Hardship Scheme caps, start there — it's the more structured route with clearer eligibility. If you're a single adult without dependants (excluded from the Hardship Scheme), Section 13A discretionary relief is your only option beyond the standard CTS.
Apply for the Hardship Scheme if you meet its criteria. For exceptional circumstances or a separate Section 13A request, ask Croydon whether it will consider both forms of relief for your account.
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What the 2027/28 Consultation Could Change
Croydon's September 2026 consultation includes proposals to cut the maximum standard working-age award from 75% to 50%. If adopted, the gap between standard CTS and a liveable bill gets even wider, making the hardship mechanisms more critical. The consultation also proposes lowering the property band cap from Band D to Band C, which would further reduce support for households in higher-banded properties.
For a full walkthrough of both hardship routes — including what evidence to include and how to frame your application — the Croydon Council Tax Reduction guide covers the entire process alongside the standard CTS claim.
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