Council Tax Reduction Scheme 2026-27

Overview

The Council is reviewing its Council Tax Reduction Scheme (the scheme), which helps residents on low incomes by reducing the amount of Council Tax they need to pay. Some households currently receive up to 100 per cent support, meaning they do not pay any Council Tax.

We are proud to have one of the most generous schemes in London, helping around 8,000 working-age households each year. However, this may have to change in the future as the Council is facing the biggest financial challenge it has ever faced over the next few years.

Between now and 2030, we expect to lose around £82 million of Government funding, which represents nearly half of the funding we have available to run services. This is because the Government’s Fairer Funding Review aims to redistribute funding from London to areas with greater deprivation.

At the same time, the cost of providing services is increasing – particularly in areas such as children’s and adult social care, homelessness support, and temporary accommodation. Taken together, this means the Council needs to make around £130 million of savings by 2030.

We are reviewing all areas of spend, with a priority to protect the services we have to deliver, be as efficient as possible, and ensure that the most vulnerable continue to receive the support they need. However, this will still mean that many of our services and the support we offer may need to change in the coming years.

Supporting those who most need our help

The Council has been proud of its work to support those on low incomes, spending over £14m a year offering reduced or zero council tax to 8,000 households, providing over 15,000 people with direct cash payments to tackle the cost of living crisis, and recently publishing our Fairer Action Plan which is focused on reducing inequality in the borough.

However, as a result of the scale of the government’s proposed funding cuts the Council is now regrettably having to look at reducing the amount of Council Tax Reduction we can offer to working age residents. Most other local authorities have had to reduce their scheme over the last few years. The Council would prefer not to have to do this, but the level of financial change means we now have to look at all available options.

We know the impact of a potential change to the scheme will be significant, with over 5,000 households being asked to pay some level of Council Tax for the first time, and the impact likely touching over 8,000 households, and this proposal is not being put forward lightly.

This consultation

No decision has currently been made on reducing the level of Council tax reduction we offer to residents, but in our overall budget for 26-27 the Council has estimated a 10 per cent reduction for working age adults. This would save the Council around £400k a year.

If we do not consider a potential reduction of the scheme, we would have to find the £400k through cutting other Council budgets.

In this consultation we ask you about the impact a 10 or 20 per cent change in the scheme would have, and what support we can provide to mitigate this impact as far as possible, as well as where else you think we could look for these savings.

Pension-age residents are protected by a national scheme set by government, so this consultation only applies to working-age households.

Your feedback will help us understand how these options might affect households and shape any final recommendations made to Full Council for a decision on the future of the scheme.

You can read more information on the Council Tax Reduction Scheme and proposed changes in the below 'Frequently Asked Questions' document.

Frequently Asked Questions (FAQs) Frequently Asked Questions (FAQs)

1. What is the Council Tax Reduction Scheme (CTRS)?

The CTRS helps residents on a low income to pay their Council Tax.
Working-age residents can receive up to 100 per cent support, depending on their income, household composition, and personal circumstances.
Support is means tested, so we look at household income, savings and who lives with you. Residents with the lowest incomes receive the most support.
The amount of support you receive can change throughout the year depending on your changing circumstances.
Pensioners can receive up to 100 per cent support, meaning they may not have to pay any Council Tax.
A separate national scheme for pension-age residents remains in place and is not affected by this review.

2. What changes are you considering to the Scheme?

As the Council is facing significant financial budget cuts from Government, we have to find savings of over £130m by 2030. This means all services and offers of support are having to be reviewed.
As part of this we are considering reducing the support we provide to working age adults who currently benefit from the Council Tax Reduction Scheme. Any changes of this kind would mean the 8,000 households who currently receive a reduction would have to pay more Council Tax in the future.
In this consultation we are asking whether you think changing the support levels would be fair, what impact different changes would have, and where else we could look for the saving instead.

3. Who would be affected?

These proposals apply to working-age residents who currently receive Council Tax Reduction (CTR).
Pensioners will not be affected as their applicable amount is determined by the government annually.
Around 8,000 working-age households in Kensington and Chelsea currently receive support. Most are low-income households, including families with children, carers, disabled adults, and residents in low-paid work.

4. How do I find my Council Tax band or current support?

Find your band on your Council Tax bill or the Government’s online banding checker. https://www.gov.uk/council-tax-bands
Check your current support on recent Council Tax Reduction/benefit letters. If you are unsure, contact us using the details below and we will help you.

5. What might I be asked to pay?

If you currently receive 100 per cent support, you do not pay Council Tax. If a contribution is introduced, you would pay part of your bill. The exact amount depends on your Council Tax band and household circumstances.

What these changes could mean for households if support is reduced:

If you currently receive 100 per cent Council Tax Reduction (meaning you do not pay any Council Tax), the tables below show how much you might need to pay each year if support was reduced by 10 per cent or by 20 per cent.

The figures are examples for different property bands (A–H) and for households with one adult or two or more adults. They are designed to help you understand what the changes could mean for you.

Council Tax can be paid in instalments throughout the financial year (April to March). You can find your Council Tax band on your Council Tax bill or by visiting: Check your Council Tax band - GOV.UK

For households with two or more adults

% Reduction in support	Council Tax Band
	A	B	C	D	E	F	G	H
0%	£0	£0	£0	£0	£0	£0	£0	£0
10%	£109.54	£127.79	£146.05	£164.30	£200.81	£237.33	£273.84	£328.61
20%	£219.07	£255.58	£292.09	£328.61	£401.63	£474.65	£547.68	£657.21

For households with one adult

% Reduction in support	Council Tax Band
	A	B	C	D	E	F	G	H
0%	£0	£0	£0	£0	£0	£0	£0	£0
10%	£82.15	£95.84	£109.54	£123.23	£150.61	£177.99	£205.38	£246.45
20%	£164.30	£191.69	£219.07	£246.45	£301.22	£355.99	£410.76	£492.91

*Figures calculated using the expected percentage increase to Council Tax bills for 2026/27

Example scenarios

Below are some example scenarios of how potential changes might impact on residents.

These figures are illustrative and based on 2025/26 Council Tax levels. Actual amounts will vary depending on your household size, income, and Council Tax band. The figures shown are average examples to help you understand the possible scale of change.

Example 1

Betty is a single parent, her adult child who is in full time employment and is over 18 lives with her in a Band B property. She currently receives 100 per cent support and pays nothing towards her Council Tax.

For 2026/27 if there is no change to the Council Tax Reduction scheme she will continue to receive 100 per cent support and will have no Council Tax to pay.

For 2026/27 if there is a 10 per cent reduction to the Council Tax Reduction scheme, she will receive 90 per cent support and must pay £127.79 towards her Council Tax (£2.46 per week).

For 2026/27 if there is a 20 per cent reduction to the Council Tax Reduction scheme, she will receive 80 per cent support and must pay £255.58 towards her Council Tax (£4.92 per week).

Example 2

Ashraf, his partner and 2 children live in a band G property. They currently receive 100 per cent support and pay nothing towards their Council Tax.

For 2026/27 if there is no change to the Council Tax Reduction scheme they will continue to receive 100 per cent support and will have no Council Tax to pay.

For 2026/27 if there is a 10 per cent reduction to the Council Tax Reduction scheme, they will receive 90 per cent support and must pay £273.84 towards their Council Tax (£5.27 per week).

For 2026/27 if there is a 20 per cent reduction to the Council Tax Reduction scheme, they will receive 80 per cent support and must pay £547.68 towards their Council Tax (£10.53 per week).

Example 3

Tom currently lives alone in a Band D property and currently receives 100 per cent support. He currently has nothing to pay towards his Council Tax.

For 2026/27 if there is no change to the Council Tax Reduction scheme he will continue to receive 100 per cent support and will have no Council Tax to pay.

For 2026/27 if there is a 10 per cent reduction to the Council Tax Reduction scheme, he will receive 90 per cent support and must pay £123.23 towards his Council Tax (£2.37 per week).

For 2026/27 if there is a 20 per cent reduction to the Council Tax Reduction scheme, he will receive 80 per cent support and must pay £246.45 towards his Council Tax (£4.74 per week).

Example 4

Ophelia currently lives alone in a Band F property and currently receives 100 per cent support. She currently has nothing to pay towards her Council Tax.

For 2026/27 if there is no change to the Council Tax Reduction scheme she will continue to receive 100 per cent support and will have no Council Tax to pay.

For 2026/27 if there is a 10 per cent reduction to the Council Tax Reduction scheme, she will receive 90 per cent support and must pay £177.99 towards her Council Tax (£3.42 per week).

For 2026/27 if there is a 20 per cent reduction to the Council Tax Reduction scheme, she will receive 80 per cent support and must pay £355.99 towards her Council Tax (£6.85 per week).

6. I’m not on CTRS now. Can I still respond?

Yes. The consultation is open to all residents, organisations and stakeholders.

7. What support will be available if I struggle to pay?

The Council currently provides a range of support to help those who are most in need, such as:

Hardship Support Fund
Household Support Grant
Crisis Support
Tenancy Support Fund
Support around benefit maximisation
Debt or benefits advice

You can find help and advice and debt advice on the Council website.

Help and Advice | Royal Borough of Kensington and Chelsea

Debt advice | Royal Borough of Kensington and Chelsea

8. How do I have my say?

Complete the online survey
If you need a paper copy, large print or another format, contact us and we will provide one.
If you need help completing the consultation or are worried about how the proposed changes might affect you, local advice agencies such as Citizens Advice can provide independent support.

9. What happens after the consultation closes?

We will analyse all responses, including any equalities impacts.
A summary of consultation results will be published on the Council website
Findings will be reported to the Council’s Leadership Team

10. How will a decision be made?

A decision will be made at the Full Council meeting in January 2026. The analysis of this consultation will be included in the report that will go to Full Council and will inform the final decision made. At this point, we will also know the amount of funding we will receive from the Government so Full Council will have the benefit of a more informed financial position.

11. Who can I contact with questions?

Email: CTRSconsultation@rbkc.gov.uk

Why your views matter

How to have your say

Complete our short online survey below (takes 5–10 minutes).
If you need help completing the consultation or are worried about how the proposed changes might affect you financially, local advice agencies such as Citizens Advice can provide independent support and guidance.
If you require the consultation material and survey in another format, for example in paper, large print or in another language please email CTRSconsultation@rbkc.gov.uk

What happens next?

The consultation will run from Monday 27 October to Sunday 7 December 2025.

Once the consultation period ends, your responses will be carefully analysed. The results will be reported to the members of the Council, who will consider the outcome of this consultation when making a decision on the future of the Council Tax Reduction Scheme.

A summary of the consultation findings will be published on the Council website, and a detailed report will be made available.

The finalised scheme will be approved by Full Council in January 2026. This is before the annual budget-setting process in February 2026, with any potential changes to the scheme taking effect from April 2026.

Take part in the consultation

This activity will open on 27 Oct 2025. Please come back on or after this date to give us your views.

Areas

All Areas

Interests

Benefits
Consultations
Council Tax
Finance and Budgets