Thousands of residents on low incomes who currently pay as little as 15% of their council tax, will pay as much as 43% from 1st April, reports Sebastian Mann, Local Democracy Reporter
Thousands of Waltham Forest residents will no longer be eligible for council tax support amid a raft of cuts by the town hall.
Labour councillors voted to narrow the support scheme at a full council meeting last night (12th December).
Under the previous policy, working-age residents on low incomes would pay as little as 15% of their council tax. From 1st April, they will pay as much as 43%.
The cuts will save the authority £2.23million, according to council leader Grace Williams.
She said Waltham Forest was facing a “deep” financial crisis in the form of a £23m budget deficit over the next three years and “needed to balance our budget”.
In order to avoid financial doom, she said the council needed to “make decisions” and “prioritise core services”.
She added that if the council did not cut the support scheme, it would have to make the same savings elsewhere.
If the council did end up bankrupt, stringent government commissioners would be appointed to curtail all non-statutory spending, she warned. The Labour leader said it would be “really bad for our destiny”.
Under the new income-banded scheme, factors such as income, capital, and household sizes will be taken into account.
Only those with “limited capabilities to work” or who have children younger than five would be able to apply for the 85% reduction.
The cuts were criticised in October by the Waltham Forest Conservatives for taking support away from “some of those most in need of help”.
Group leader Councillor Emma Best 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.”
The council estimated it would spend more than £20.6million on supporting residents with their council tax next year under the previous system. That is £3.5m more than what it spent in 2022/23.
Councils receive a fifth of their funding from central government, but more than half comes from council tax.
Top councillors have been warning of “tough decisions” being taken since the summer.
In October, it was revealed that Waltham Forest was eyeing £10m in cuts over the next year. Chief executive Linzi Roberts-Egan said the council would be “reviewing” its staffing levels and had considered pausing new hires in a letter to staff.
The costs of adult social care, children’s services and temporary accommodation are continuing to rise and put strain on the council.
In 2019, the council was spending £35,000 on temporary accommodation. This year, it spent £3.9m.
The council tax cuts were approved by 38 votes to 13.
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