Barking and Dagenham Approves Council Tax Support Cut Plan

Council approves cuts to council tax support affecting low income residents. A fund will aid at-risk locals.

Barking and Dagenham Approves Council Tax Support Cut Plan
Barking and Dagenham Approves Council Tax Support Cut Plan

The council in Barking and Dagenham made a tough choice, voting to cut council tax help, a move affecting low-income people. It could save the council £3 million next year, but it will impact residents. The council plans to set aside £500,000 for a fund to help the most at-risk locals.

Council leader Dominic Twomey called it a really difficult decision, noting it affects vulnerable people. The council reviews the tax support scheme each year, which helps people with low incomes pay council tax. They increased support to 85% because of living costs for the years 2023/24 and 2024/25.

In 2025/26, support drops to 63% due to money problems. As of December 2024, they spent £17.5 million on the scheme. Twomey said costs would rise without the decrease in support, potentially costing an extra £1 million.

Twomey hopes they can improve the scheme later on. Currently, six income bands determine discounts. They will remove the sixth band completely. Bands 1-4 will see a 22% reduction in support, and Band 5 will see a 5% drop.

The council held two public consultations for feedback. The latest one asked about two options with cuts: a 22% cut and a 25% cut. Most residents strongly opposed both options during the consultation.

One resident questioned why the council was targeting the poorest, feeling the council should find other solutions instead. Another noted increasing bills during inflation is hard, and people expect help, not higher taxes.

A third person said the fund is not enough to help everyone, saying that everyone struggles already, so keep the support. Cabinet members approved the recommendations in the report, and the full council will vote on it. If passed, details will be out in March 2025, and changes begin April 1, 2025.

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