Under new proposals, only residents with ‘limited capabilities to work’ or who have children younger than five, will be able to apply for a 85% reduction in council tax, reports Sebastian Mann, Local Democracy Reporter

People could be eligible for less council tax support under changes proposed by Waltham Forest Council.

Under the current scheme, working-age residents in Waltham Forest on low incomes can pay as little as 15% of their council tax.

But under new proposals, they will be paying a minimum of 43% of their monthly bill.

Factors such as income, capital, and household sizes would be taken into account as part of a new income-banded scheme.

Only those with “limited capabilities to work” or who have children younger than five would be able to apply for the 85% reduction.

Earlier this month, it was revealed that Waltham Forest had overspent by £17million so far this year.

In order to avoid financial doom, the town hall said it will be reviewing its staffing levels and cutting “unessential” daily spending.

It had been supplementing the scheme, which it called “temporary,” but “increased financial pressures” mean it will be “difficult to continue doing so”.

Councils receive a fifth of their funding from central government, but more than half comes from council tax.

As part of a consultation on the changes, the council said: “We’ve seen a large increase in the cost of the council tax support scheme.

“This is partly because on 1st April 2023, we introduced a more generous scheme as a temporary measure to offset the worst effects of the cost-of-living crisis.”

The council estimates it will spend more than £20.6million on supporting residents with their council tax next year, under the current system.

That is £3.5m more than what it spent in 2022/23, and the council says relying on its reserves could leave it in a “vulnerable position”.

Council leader Grace Williams confirmed the consultation would go ahead at a full council meeting on 17th October. She also indicated the council would be making £10m in cuts next year.

The proposals were attacked by Councillor Emma Best, leader of Waltham Forest Conservatives, for taking support away from “some of those most in need of help”.

She said: “You really have to question the priorities of this Labour council.

“They can find money for pet projects like unnecessary citizens’ assemblies and have quadrupled the number of senior staff in the council, putting millions on the wage bill.

“But now they want to cut council tax support to some of those most in need of our help.

“When you add to this the cuts to the winter fuel allowance by the Labour government, it shows how little the Labour Party both locally and nationally cares for our most vulnerable residents.”

A public consultation is currently underway and a decision will be made on the proposals at a full council meeting in December.

Top councillors have been warning of “tough decisions” being taken since the summer.

At a cabinet meeting in July, councillor Paul Douglas said the council “cannot [afford to] be in the same position in twelve months’ time”.

National funding for councils has significantly reduced since 2010, according to the Institute for Fiscal Studies (IFS).

In June, the IFS reported that councils’ funding per person had fallen by a real-term average of 26% across the UK.

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