Croydon Council Passes Council Tax and Benefits Package Affecting Household Payments

Croydon Council approved a set of changes to council tax rates and the council tax reduction scheme during its meeting on 7 July. The package includes a 2.99 per cent increase in the standard council tax rate alongside expanded eligibility thresholds for the reduction scheme, directly altering the amounts residents pay each year.

These decisions occur as national cost-of-living pressures continue to affect household spending on housing, energy and local services. The council's budget papers for 2026-27 identify the need to balance revenue requirements with targeted relief measures for lower-income residents in the borough.

Changes to Payment Obligations

Households in wards such as New Addington and Broad Green will see the standard bill rise by an average amount determined by property band, while those qualifying for the reduction scheme may receive additional discounts based on income and household size. Local advocates note that the expanded criteria could cover more families receiving universal credit or disability benefits.

The council's published budget documents project that the revised reduction scheme will deliver an average annual saving of £120 for eligible households in the lowest income brackets. This figure comes from modelling in the 2026-27 budget papers that accounts for current claimant numbers across the borough.

Implementation Timeline

Council officers will update billing systems over the coming months so that revised amounts appear on the first instalment notices sent in late summer. Residents can apply for the updated reduction scheme through the council's online portal or at local customer service centres starting in August.

Further reviews of the scheme's take-up rates are scheduled for the October council meeting, with any adjustments to eligibility rules expected to take effect from April 2027.