Croydon Council Tax Reduction 2027/28: What the Consultation Means for You
What Croydon Is Proposing for 2027/28
On 23 September 2026, Croydon's Executive Mayor and Cabinet approved a statutory public consultation on changes to the working-age Council Tax Support scheme for the 2027/28 financial year. The consultation is running through the Commonplace portal until 9 November 2026.
The proposals are driven by the council's ongoing financial recovery — Croydon issued Section 114 notices in 2020 and 2022, and the overall Council Tax Support scheme costs approximately £39 million per year, with about £25 million going to working-age households.
The Key Options Under Review
The consultation put several cost-cutting options to residents:
Reducing maximum awards for standard working-age claimants. The current maximum discount is 75% for households in the lowest income band. The proposal would cut this to 50%, which would make Croydon's scheme among the least generous in Greater London.
Cutting support for lone parents with a child under five. Lone parents currently receive up to 80% under a semi-protected tier. The options include reducing this to 70% or 50%.
Reducing support for disabled non-working residents. Currently, disabled residents who are out of work and receiving PIP, DLA, or ESA get 100% protection — their Council Tax liability is reduced to zero. The consultation considers reducing this to 80%, and potentially restricting eligibility to only those receiving the Universal Credit LCWRA element.
Lowering the property band cap from Band D to Band C. Currently, working-age claimants in higher-banded properties have their discount calculated on the Band D rate. A Band C cap would lower the base amount the percentage is applied to, reducing the cash value of every award.
Restricting backdating of beneficial changes. Under the current rules, there is no time limit on reporting a beneficial change in circumstances — if your income dropped six months ago and you only tell the council now, your award is backdated to the date the change happened. The proposal would limit this window.
What Has Not Changed Yet
The 2026/27 scheme remains in force until 31 March 2027. None of the consultation proposals are live yet. If you currently receive Council Tax Reduction in Croydon, your existing award continues under the current rules for the rest of this financial year.
The pension-age scheme is nationally prescribed and is not affected by any of these proposals. Pensioners in Croydon continue to receive up to 100% reduction under central government rules regardless of what the council decides for working-age claimants.
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What You Should Do Now
If you are not yet claiming Council Tax Reduction and you think you qualify, apply now under the current, more generous rules. Your 2026/27 award is calculated under the existing income bands and percentages. The council's published forward plan schedules a decision on the 2027/28 scheme for 10 February 2027.
If you are already claiming, make sure your current award is correct. Check that the income band on your decision notice matches your actual weekly income, and that all disregards (PIP, DLA, Child Benefit, housing element) have been applied. An error in your current award could mean you are paying more than you need to under the existing scheme.
The Croydon Council Tax Reduction guide explains the current 2026/27 income bands, the application process, and how to check your award — all of which still apply until the council finalises the 2027/28 scheme.
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