Council Retains Tax Support Scheme for Low-income Households
40% of residents receive some form of discount
Council tax support has been in offered in Hammersmith & Fulham for over a decade
January 15, 2025
Low-income households in Hammersmith and Fulham will continue to pay no council tax after a support scheme was recommended to be extended for a further year. The local authority has provided the full package of council tax support to those most-in-need since 2013, when the Government removed funding, leaving town halls to set up their own schemes.
It is one of three London councils to do so, with most other local authorities expecting some form of contribution from low-income residents. The decision to recommend keeping the Council Tax Support Scheme the same for 2025/26 was taken at last night’s (January 13) Cabinet meeting. It will now go to Full Council for a final decision.
A report by Kirsty Brooksmith, Assistant Director Benefits, detailed how a review of the scheme was carried out to assess its performance. It found other options considered, such as introducing banded income schemes, would negatively impact some residents and so were not recommended.
In a comparison with other London authorities, the review found the range of support offered varied. The lowest level was a 15 per cent discount, with the majority offering 90 per cent. Only three councils, including Hammersmith and Fulham, offer the full 100 per cent.
“We were one of only 34 councils out of 326 across England that retained [the] scheme providing up to 100 per cent support to our residents, when local schemes were introduced in April 2013,” the report states. “We have continued to provide this and 2025/2026 will be the 13th year that we have consistently provided up to 100 per cent support to our residents.”
At last night’s meeting, Cllr Rowan Ree, Cabinet Member for Finance and Reform, said he is proud that Hammersmith and Fulham has ‘one of the most comprehensive support schemes in the country’. He cited how four in 10 households in the borough receive some form of discount with care leavers and foster carers among those not paying, ‘because of the difficulties care leavers have been through and because of the value of the contribution that foster carers make to our borough’.
Council Leader Stephen Cowan added the local authority had retained its council tax support amid a 54 per cent reduction in its grant funding from the Government between 2010/11 and 2024/25.
“I don’t think there’s a company on Earth in the private sector and many organisations in the public sector who could have a cut like that and still try and do more services and have lower taxes,” he said. Members approved the recommendations to go to Full Council.
The Cabinet paper notes the support will cost £13.9 million for 2025/26, £9.1m of which will be paid by the council and the rest by the Greater London Authority (GLA). It detailed other council financial aid available to residents, including up to £900 for those who lost their Winter Fuel Allowance, and its unique free home care service.
The local authority also recently highlighted its ethical debt policy, under which it works to rely much less on bailiffs and instead help residents avoid accruing debt in the first place. The policy has been running since 2017.
The London Standard reported earlier today how thousands of the poorest residents in the capital are expected to pay council tax for the first time in the coming financial year. Just under half of London’s boroughs are reportedly expected to make changes to their council tax support schemes to help meet financial challenges. Among those is Hounslow Council which is consulting on plans to withdraw or reduce discounts.
Ben Lynch - Local Democracy Reporter