Hackney Mayor Revises Council Tax Reduction Scheme to Address Household Budget Pressures

The Mayor of Hackney has updated the council tax reduction scheme for the 2026-27 financial year. The revisions expand the maximum discount available to residents on low incomes and adjust the income thresholds used to calculate support. The policy applies to households already receiving council tax support and to new applicants who meet the revised criteria.

National increases in energy and food costs have placed additional strain on local budgets. Hackney Council’s finance team presented the updated scheme during the July cabinet meeting, citing data from the borough’s revenue collection records that show a rise in arrears cases since 2024. The changes respond to those figures by altering how support is calculated rather than introducing new funding streams.

Effects on specific household costs

Residents in receipt of housing benefit or universal credit will see their council tax bills recalculated under the new bands. A household in receipt of pension credit, for example, may now qualify for a higher percentage reduction on properties in council tax bands B and C. The scheme also extends limited support to some working-age adults whose earnings sit just above previous cut-off points, covering addresses in wards such as Hackney Central and Homerton.

Local advocates note that the adjustment alters the amount deducted from monthly bank accounts for council tax. The legislation states that the council must notify affected residents by letter before the October instalment date. Payments will continue to be collected through the existing direct debit system or through the council’s online portal.

The council’s published 2026 budget papers record that the existing scheme currently supports approximately 18,000 households. The government says the policy will increase the number of eligible cases by several hundred once the new thresholds are applied. No additional central government grant has been allocated to cover the extra discounts.

Next steps for residents and the council

Applications for the revised support open on 1 August through the council website and at Hackney Service Centre. Staff will process claims in the order received, with decisions expected within four weeks. The council has scheduled two public information sessions at Hackney Town Hall in late July to explain the new income thresholds and required evidence.

Further updates to the scheme will depend on the outcome of the council’s mid-year financial review scheduled for November. Residents can check their eligibility using the online calculator already hosted on the borough website.