Islington Doubles Down on Council Tax Relief as Cost Pressures Bite

As household budgets continue to feel the strain, Islington Council has confirmed it will once again shield thousands of its lowest-income residents from council tax bills – with many paying nothing at all.

More than 24,500 households across the borough are set to benefit from the council’s Council Tax Support Scheme in 2026/27, one of the most generous local schemes in the country. For the most financially vulnerable residents, the support covers the full cost of council tax, removing the bill entirely. Others of working age will continue to receive support of up to 95 per cent, while pensioners remain protected under national rules.

At a time when rising costs are forcing difficult choices in many homes, the scale of Islington’s commitment is striking. The council spent around £28 million maintaining the scheme in 2025/26 and has pledged to invest a similar amount again next year – a decision that stands in contrast to many other local authorities who have scaled back comparable support.

For Islington, the scheme is about more than balancing the books. It forms part of a wider approach aimed at reducing inequality and preventing residents from being pushed further into financial hardship. Alongside council tax relief, the borough’s Income Maximisation Service has helped residents secure £16.2 million in additional income since April 2024, supporting people to access benefits and financial help they may otherwise have missed.

Cllr Flora Williamson, Islington Council’s Executive Member for Finance and Performance, said:

“We know that many of our residents are struggling, amid the huge rise in the cost of living over recent years.

“Here in Islington, we stand with those that most need support and make sure that low-income households aren’t left behind. That’s why we’re again committing to continuing our generous Council Tax Support Scheme at one of the highest levels in the country.

By law, councils must review their Council Tax Support Schemes each year. While some authorities have used that process to reduce entitlements, Islington has repeatedly chosen a different path – maintaining high levels of protection to ensure council tax does not disproportionately hit those least able to pay.

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