Counting the costs of council tax support

摘要

Analysis of administrative data from nearly half a million households across 14 London boroughs shows how the economic fallout from COVID has impacted the caseloads and costs of council tax support schemes in the capital. Council tax liability rose by 4% on average across London last April and again, by a further 4%, in 2021-22. Councils struggling to meet their statutory spending commitments may not be able to maintain the generosity of their council tax support (CTS) schemes if caseloads remain high. At the same time, more people are now in need of council tax support, yet a doubling of Universal Credit claims has only led to an increase in council tax support claims of around 13%. On average, this is an extra 1,942 households claiming support from their council in each borough. Council tax support costs grew by 16%. This equates to £2.4m for the average borough, representing nearly 1% of a council's total budget. The take-up rate of council tax support varies widely between boroughs, from 35% of all Universal Credit claimants in Sutton to 14% in Lambeth. This is driven by the generosity of council tax support, awareness and how easy it is to claim.