Low-income residents with “limited capability for work” or who have children under five are currently able to apply for an 85% reduction – but Waltham Forest Council is consulting on cutting that to 75%, reports Sebastian Mann, Local Democracy Reporter
More than 7,000 vulnerable and low-income residents could pay more in council tax under proposals from Green-led Waltham Forest Council.
The town hall is looking to cut council tax support by 10% for people with “limited capability for work” or who have children under five.
The former Labour administration already cut the scheme in 2024, significantly reducing the discounts available to residents who struggled to pay the full bill.
Working-age residents on low incomes previously paid as little as 15% of their council tax. They now pay as much as 43%.
However, those with “limited capability for work” or who have children under five can still apply for an 85% reduction.
Under new proposals, which are currently the subject of a consultation, that reduction would be cut to 75% – which the council says is in line with the support offered by other London local authorities.
Waltham Forest says it wants the scheme to be “fair and easy to understand,” but one “the council can afford”, adding: “Giving more support would cost extra money. This would mean spending less on other services, raising council tax more than needed or using emergency savings.”
Councillor Em Dean, the cabinet member for finances and resources, said: “We review the council tax support scheme every year to make sure it remains fair, affordable, and sustainable. It is important to note that no decision has yet been made – we are consulting residents and considering their opinions before doing so.
“We recognise that some households could receive less support under the proposals, while others could receive more.
“We are seeking views on the potential impacts and how they could be mitigated, and we plan to maintain a £750,000 hardship fund to provide additional support for residents facing financial difficulties.”
The proposed changes will save the cash-strapped council £970,000 a year, but will see 7,079 households lose out. On the other hand, 2,343 would receive more help than they do now.
Households with no earnings that do not get special protection now could see their top rate rise from 57% to 75%, the council says.
The council has produced a list of hypothetical scenarios to accompany the consultation, giving examples of how people in different situations would be affected.
One describes how a severely disabled single mother to a severely disabled child, living on Universal Credit and other benefits, would currently receive £35.33 weekly towards her £41.57-a-week council tax bill. Under the changes, she would get £31.18 a week – a drop of £4.15.
In another, a hypothetical 28-year-old resident who lives alone, works part-time and earns £130 a week, alongside a small amount of Universal Credit. Under the current scheme, his £27.71 weekly bill is reduced by £13.02.
But under the proposed scheme, he would shift from band 2 to band 4 and receive a greater tax discount worth £15.24 a week – an increase of £2.22.
Labour opposition leader Kizzy Gardiner said the move was both “surprising” and “deeply concerning”.
Cllr Gardiner said: “With cost-of-living pressures continuing to affect households across Waltham Forest, the Green Party leadership asking thousands of residents to pay more Council Tax demands serious attention and justification.
“We are proud to have introduced the council tax support scheme and we balanced our financial responsibilities with protecting the most vulnerable, our guiding principles in every decision.”
She added it was “especially difficult to reconcile” the proposals with the Green Party’s manifesto pledges to “set up a cost reduction taskforce, focused on driving down costs for residents” and “expand and provide additional cost-of-living support”.
The consultation will end in November and a final decision on the scheme is expected to be made the following month.
If approved, any changes would come into effect on 1st April 2027.
You can participate in the consultation until Friday 6th November here
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