Politics

Hackney Council Approves 2026-27 Council Tax Rates Alongside Expanded Cost-of-Living Rebate Scheme

The measures will alter annual bills for all 120,000 households in the borough from April 2027 while directing new direct payments to an estimated 6,500 low-income families.

By Hackney Policy Desk · Published 8 July 2026

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Hackney Council voted on 7 July to set the 2026-27 council tax at a 2.99 percent increase for all bands while expanding the local Cost of Living Rebate Scheme to cover additional households receiving housing benefit.

The decision follows publication of the council's medium-term financial strategy, which projects a £4.8 million shortfall in adult social care funding for the coming year due to rising contract costs with external providers.

Changes to Council Tax Bills

A band C property, the most common in Hackney, will face an additional £38 on its annual bill under the new rate. Band D properties will see a £45 rise. The increase applies uniformly across the borough's eight wards and replaces the temporary 1.99 percent cap used in the prior two financial years.

Residents who pay by direct debit will receive the first adjusted bill in April 2027. Those on instalment plans will see the higher amount spread across ten months rather than twelve.

Expanded Rebate Scheme

The council also approved widening eligibility for the Cost of Living Rebate Scheme, raising the income threshold from £18,000 to £21,500 for single applicants and extending automatic qualification to households already on council tax reduction. Eligible residents will receive a one-off payment of £150 or £200 depending on household size, drawn from the £1.2 million allocation in the 2026 budget papers.

Applications open on 1 September 2026 through the council's online portal, with payments scheduled for December. The scheme remains funded entirely from retained business rates rather than central government grant.

Implementation guidance will be published on the council website by 15 August, and residents can contact the revenues team for confirmation of their band and rebate status before the new bills are issued.

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