Merton Council has confirmed that the core element of Council Tax will remain frozen from April 2026 for the 2026/27 financial year. The council will apply a 2 per cent Adult Social Care Precept under national legislation, which is legally ring-fenced for adult social care.
The decision affects the structure of council tax bills issued by the borough and does not change the core Council Tax rate.
What will change from April 2026
From April 2026, households in south London’s Merton borough will not see an increase in the main Council Tax rateused to fund core local services. The council has confirmed that the core element of Council Tax will be frozen for the 2026/27 financial year.
The only adjustment introduced by the authority is the application of a 2 per cent Adult Social Care Precept, applied under powers granted to councils in England and legally ring-fenced for adult social care. The change does not constitute a general council tax rise and does not involve an increase to funding for core council services, including waste collection, housing support, neighbourhood services or local administration.
What this means for household bills
Any increase appearing on council tax bills from April 2026 will relate solely to the Adult Social Care Precept applied by Merton Council. The cash impact will vary depending on a property’s valuation band. As in previous years, residents’ bills will also include separately determined charges, most notably the Greater London Authority (GLA) precept, which funds London-wide services including transport, policing and fire services. Those charges are set independently by the Mayor of London and sit outside the borough council’s control. Because different elements of council tax are set by different authorities, residents are advised to distinguish between changes to the Merton Council element and the overall total bill when comparing year-on-year figures.
Why the core Council Tax rate is frozen
Merton Council has confirmed that the core Council Tax rate will remain frozen for the 2026/27 financial year. The freeze applies to the main element of Council Tax used to fund core local services.
Under current legislation, councils in England may apply a separate Adult Social Care Precept in addition to the core rate. Merton Council has confirmed that it is applying this precept while leaving the core rate unchanged. No increase has been applied to the Council Tax element that funds services such as waste collection, housing support, neighbourhood services or local administration.
The Fair Funding Review
From April 2026, the government’s Fair Funding Review will revise the framework used to distribute funding between local authorities in England. Under the revised system, councils are assessed according to factors including local revenue-raising capacity and service demand. Authorities assessed as having higher local resources are expected to fund a larger share of services through council tax and business rates, with reduced reliance on central government grants. Merton is classified within this framework under the published national methodology.
How the Adult Social Care Precept is used
The Adult Social Care Precept is legally ring-fenced and may only be used to fund adult social care. Under national rules, revenue raised through the precept cannot be diverted to other council services or discretionary spending. According to Merton Council, funding from the precept is allocated to statutory adult social care functions, including:
- care packages for older and vulnerable residents with assessed needs
- services that support independent living
- hospital discharge support
- preventative and early-intervention care
The council states that the precept is used to support existing adult social care provision, in line with statutory responsibilities.
How Merton compares with other boroughs
Council tax bills in London are made up of more than one component. The amount paid by a household typically includes:
- the borough council element set by the local authority
- the Greater London Authority (GLA) precept, set separately for London-wide services
- additional local charges where applicable (for example, policing-related and fire-related components funded through London-wide arrangements)
Because these elements are set by different bodies, comparisons between boroughs can vary depending on which figure is being compared. Some councils publish and discuss the total bill, while others reference only the borough council element.
Budget decisions and published figures are also released at different points in the year across councils, which can affect what is described as “latest” at any given time. For residents comparing bills across boroughs, the relevant document is the final council tax bill issued for the property’s band, which sets out each component of the charge separately.
Key questions residents are asking
Will my council tax bill change in April 2026?
If Merton’s 2026/27 budget is approved on 25 February, council tax bills issued for April 2026 will reflect the application of the Adult Social Care Precept. The core element of Council Tax set by Merton Council is frozen for 2026/27.
Is this the maximum the council could apply?
Under national rules in England, councils may increase council tax by up to 5 per cent in a year without a local referendum. Merton Council has confirmed that it is not increasing the core element and is applying only the 2 per cent Adult Social Care Precept.
Does the precept stay in social care?
Yes. The Adult Social Care Precept is legally ring-fenced and may only be used to fund adult social care. It cannot be redirected to other council services or discretionary spending.
Could council tax change again in future years?
Council tax levels are set annually through the budget process. Any future changes would be determined in subsequent budget decisions and would depend on the relevant national rules and funding arrangements in place at that time.
What are the key dates and documents for residents?
- 25 February 2026: Full Council decision on Merton’s 2026/27 budget
- March 2026: council tax bills typically issued, showing final charges by property band
- GLA precept: set separately and included on the final bill alongside the borough element
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