Ending of Low-income Council Tax Exemption Branded as Unfair
Conservatives say planned tax rise makes discounts unsustainable
Cllr Peter Graham explaining to the meeting why he believes the cuts are necessary. Picture: Wandsworth Council
October 14, 2026
Plans to axe council tax exemption for low-income residents in Wandsworth have been slammed as “appallingly unfair”.
The borough is reviewing its council tax reduction scheme, while also proposing a 94 per cent hike in the total bill from next April.
The Conservative-run authority plans to axe 100 per cent council tax discounts for working-age households receiving disability-related benefits or attendance allowance, or those with no earned income and a child under three. The proposed reduction in support would be phased over four years.
The council said it is planning the changes as it faces major financial pressures, with its central funding due to be slashed by £84 million a year by 2030.
At the same time, the authority is proposing a 94 per cent rise in total council tax from April, with band D bills set to increase by £958 from £1,020 to £1,978 a year.
A report by council officers said it would be financially unsustainable to maintain current discounts if the proposed hike went ahead. It said the authority would extend some support to low-income working households who currently fall just outside the scheme as part of the changes.
Wandsworth’s cabinet approved plans to launch a consultation on the council tax reduction scheme proposals on Monday (12 October ).
Conservative councillor Peter Graham, cabinet member for finance, said that without removing the 100 per cent discounts, the cost of the scheme would double and council tax would need to rise further. The scheme would cost £7.1m by 2030/31, under plans to reduce support in phases over four years.
Councillor Graham said: “Everyone will now pay something, which was the case in the past, but no one will have to face a large one-off increase.”
Labour opposition leader Simon Hogg slammed the proposed changes as “hugely concerning”.
He read out feedback from residents worried about the overall proposed hike in council tax bills.
One message read: “As a paramedic on NHS wages, I cannot afford to pay an increase and will be forced to terminate my housing contract.”
Another added: “It’s the difference between putting food on the table and the heating on and me going into debt.”
A third said: “I have three kids and just cannot keep up with the cost of living, and doubling my council tax is going to make life harder.”
Councillor Hogg said: “Council tax is a dreadful, unfair tax and it is going to hit the lowest-income people the hardest, and raising it while reducing the safety net for the most vulnerable is appallingly unfair and will have a huge impact on those people.”
The administration has said the proposals would offer a “fairer deal for more people”, as everyone would have to make some contribution towards council services and people who currently fall just outside the scheme would receive help for the first time. It said those on the lowest incomes would still receive the greatest levels of support.
The council will now launch a consultation on the proposals, which would come into effect from 1 April next year if approved.
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Wandsworth’s cabinet will make a final decision on the plans on 12 October.
Charlotte Lillywhite - Local Democracy Reporter