The consultation, which runs from November 3 2025 to January 11 2026, seeks feedback from Lambeth residents on a new banded scheme that, if adopted, would make it easier for residents to find the level of support they would be entitled to, with small changes in income less likely to result in a change to their entitlement. Many other London councils have similar banded schemes in place.
Under the proposals, close to 23,000 households would continue to receive support worth an estimated £27 million a year. The income bands put forward have been informed by analysis of data from Lambeth’s Cost of Living programme. The top-rate of support would cover 73.5% of council tax bills, with those in other bands receiving a reduction of 55%, 45%, 30% or 15%.
The proposal comes as the council’s budget faces huge pressure due to demand for front-line services, particularly temporary accommodation, increased costs and over a decade of underfunding by government. Lambeth must save over £183 million in the next four years, with £99 million already agreed and a further £84 million in savings to be identified.
Continued support for those facing hardship
Lambeth Council’s Discretionary Council Tax Support Hardship Payment scheme would remain in place, with £300,000 to support those struggling to pay, which could be used to help manage the impact on people who see reduced support if the revised scheme is adopted.
Cllr Judith Cavanagh, Lambeth’s acting Cabinet Member for Finance, said: “We have worked hard to support our communities through the cost of living crisis and the spike in inflation.
“Our Council Tax Support Scheme provides significant financial support for almost 23,000 people, a number that will stay largely constant no matter what the outcome of the consultation. Despite our financial challenges, we will continue to support those on low incomes through a scheme worth £27 million a year.
“We will also continue to provide targeted assistance through the Council Tax Support Discretionary Hardship Scheme and our Tackling Poverty Action Plan.
“I’m proud that last year alone, the council provided cost of living support to over 19,500 households, including free school meal holiday provision, helping residents maximise their benefits and targeted financial guidance.
“Overall, our Cost of Living Plan brought £3.2 million into the borough, including £1.6 million for schools and £1.6 million put directly into residents’ pockets.
“This proposal aims to balance introducing a more affordable scheme for the council, with continuing targeted support to those that need it most.
“I would encourage residents to respond to the consultation, review the proposal and feedback on how they think we might best make these changes.”
Residents can visit the online consultation page to find out more and share their views.
