How Waltham Forest delivered £2.3m savings through Council Tax Reduction Scheme modelling

Like all English councils, the London Borough of Waltham Forest has discretion over Council Tax Support (CTS) for working age residents, while pensioner support is set centrally. As a result, any savings had to be delivered through changes to the working age CTS scheme.

Since April 2023, the council had operated an expanded CTS scheme to help residents on low incomes manage the cost of living crisis. While this temporary support gave protection, continuing it into 2025/26 would cost £20.6 million, £3.5 million more than in 2022/23, and was no longer financially viable.

The council had to redesign its CTS scheme at a time of significant financial pressure and rising demand for statutory services. It needed to save between £18 million and £24 million over the next three years, £2.3 million of which was needed from its CTS scheme, while maintaining support for more vulnerable residents.

Any scheme changes had to:

• Prioritise support for financially vulnerable groups
• Remain fair, transparent, and legally robust
• Be clearly evidenced and capable of withstanding public and political scrutiny

The challenge was compounded by the existing means tested scheme, which had become increasingly complex and administratively burdensome for both residents and staff. Moving to a simpler income banded scheme could improve clarity and sustainability, but represented a fundamental change in how support would be assessed and delivered.

The council needed robust evidence to show how different scheme designs would affect residents and costs, and to show how any changes would balance affordability with targeting support to those most in need.

As the Leader of the Council acknowledged, the decision required difficult trade offs in the context of ongoing financial pressure

“We recognise that people are still struggling, but the scale of the financial challenges the council faces means making some really difficult decisions so we can continue to run vital services for residents across the borough. This change prioritises giving financial support for Council Tax to people who need it most, while making the necessary savings.”

Cllr Grace Williams, Leader of Waltham Forest Council

To support this major policy change, Waltham Forest worked with Policy in Practice, using its Council Tax Reduction Scheme modelling and policy development support.

Policy in Practice’s modelling tools enabled the council to simulate the impact of different income banded CTS designs, helping Members assess how alternative approaches would affect scheme costs and levels of support for residents. This evidence was central to shaping a scheme that could meet the council’s £2.3 million savings target while maintaining fairness and transparency.

Alongside modelling, Policy in Practice provided CTS policy drafting support, helping ensure the new scheme was clearly structured, compliant, and aligned with the council’s strategic objectives.

In 2024, Waltham Forest successfully redesigned and agreed a new income banded Council Tax Support scheme for working age residents, following public consultation and approval at Full Council.

The new scheme:

• Delivered £2.3 million savings for the council
• Reduced the projected CTS cost from £20.6 million to £18.3 million
• Simplified administration compared to the previous means tested approach
• Maintained targeted support for financially vulnerable residents

The clarity provided by the modelling and supporting evidence enabled the council to move forward with confidence, balancing financial sustainability with continued support for those most in need.

The result is a CTS scheme that is more sustainable, more transparent, and better aligned with the council’s financial position, while continuing to provide support to low income households.

1. Use data led modelling to test difficult trade offs. Scenario modelling based on current local authority claim data can support councils to balance affordability with protecting vulnerable residents to see what impact changes will have
2. Income banded schemes can simplify delivery. Moving away from complex means testing with the roll out of Universal Credit can improve transparency, sustainability, and day to day administration
3. Independent modelling strengthens confidence and scrutiny. Using externally developed, data led modelling, supported by a clear written report, helps ensure assumptions, impacts and savings are robust, transparent and defensible
4. Clear evidence supports Member decision making. Accessible data and visualisations help secure buy in for complex and sensitive policy changes
5. Policy design and modelling work best together. Combining technical modelling with policy drafting support helps ensure schemes are effective, compliant, and clearly articulated