Wandsworth consults on ending 100% council tax discounts for some low-income residents

Wandsworth Council is to consult on removing full council tax discounts from some of its poorest working-age households. The cabinet agreed to the consultation on Monday 12 October. The Conservative-run council is also proposing to raise the total council tax bill by 94% from April.

Two groups would lose the 100% discount. The first is people of working age who get attendance allowance or another disability-related benefit. The second is households where nobody earns a wage and there is a child aged under three. The support would not end in one go. It would be reduced in stages over four years.

Wandsworth council tax rise: what band D would pay

A band D property currently pays £1,020 a year. Under the proposed rise, that bill would reach £1,978, an increase of £958. The council blames severe financial pressure and says its central government funding will be £84 million a year lower by 2030.

In a report, council officers concluded that the existing discounts could not be kept if the bill rose as planned. The report also said some help would be extended to low-income working households that narrowly miss out on the scheme now.

Peter Graham, the cabinet member for finance, argued that keeping the full discounts would double what the scheme costs and force council tax up even further. Under the phased plan, the scheme’s cost in 2030/31 would be £7.1m. “Everyone will now pay something, which was the case in the past, but no one will have to face a large one-off increase,” he said.

Council tax reduction scheme consultation: what happens next

Labour opposition leader Simon Hogg described the proposals as “hugely concerning”. He read out messages from residents alarmed at the size of the overall rise. A paramedic on NHS pay wrote that the increase would force them to end their housing contract. Another resident said it would make the difference between paying for food and heating and falling into debt. Hogg said raising the tax while shrinking the safety net would land hardest on those with the least money.

The administration says the changes would give a fairer deal to more people, because everyone would pay towards council services and some households would get help for the first time. It says the poorest residents would still receive the most support. If the plans are approved after the consultation, they would take effect on 1 April next year.