COUNCIL TAX bills are up – as are so many household bills. Mayor Lutfur Rahman has stepped in to offer the poorest households assistance with paying them, as part of his work to help residents with the cost of living. The Mayor is offering two kinds of help.
The Tory/Lib-Dem 90% Rule In 2013, during the austerity years, the Coalition Government delegated Council Tax Benefit to Councils – but they also cut the funding of the scheme by 10%. Their idea was that everyone who claimed this benefit should pay 10% of the bill and only get benefit for 90% of it. This was a way of cutting national expenditure on the benefit.
In around half the Local Authorities in England, the Council covers the 10% of the benefit, so that the claimant does not have to pay. Tower Hamlets is one of the Councils which covers the 10% shortfall in what is now called the Council Tax Reduction Scheme, so that claimants do not have to pay 10% of their Council Tax.
Andy Burnham should restore funding for the full level of benefit: this would be a smart move which would save Councils money while helping people struggling with the cost of living. Perhaps the local Labour Party will start one of its campaigns to achieve this, but don’t hold your breath.
Council Tax Relief Fund
Mayor Lutfur Rahman has gone further and introduced a Relief Fund. This ensures that the better off residents do pay annual increases in Council Tax in full, whereas households on lower incomes can apply to the Relief Fund to cover the cost of the increase. Residents who have a total income below 60% and are not already receiving Council Tax Reduction can apply to the Fund for assistance with the increase.
Mayor Lutfur Rahman explained his thinking. “Many families are still feeling the squeeze from rising household costs. This fund is a practical way of easing that pressure and ensuring support reaches those who need it most,” he said. “While council tax is essential to funding services residents rely on every day – from waste collection and libraries to community services – we are committed to keeping the burden on local households as low as possible.”
Deputy Mayor Cllr Maium Talukdar, echoed the Mayor’s words, saying, “Even a modest increase in bills can have a real impact on household budgets. By covering the council tax increase for eligible residents, we can help families hold on to more of their income at a time when every pound counts.”
●For more information on the Council Tax Relief Fund, go to: Council Tax Cost of Living Relief Fund
●Read more about it: Mayor Lutfur Rahman wins battle for affordable housing Mayor Lutfur Rahman supports children with special needs