Key Points:
- Barking and Dagenham Council plans to cut council tax support by up to 22% for low-income residents.
- The proposed changes aim to save £3 million for the 2025/26 financial year.
- £500,000 will be allocated to a discretionary fund to support the borough’s most vulnerable residents.
- Cabinet members are set to approve the plans at a meeting on Tuesday, February 25.
- Residents currently receiving an 85% discount would see it reduced to 63%.
- Income bands 1-4 will see a 22% reduction in support.
- Band 6 will be removed entirely, while Band 5 will see a 5% reduction.
- Pensioners will remain unaffected by the changes.
- The scheme currently costs £17.5 million for 2024/25.
- A public consultation found that most residents opposed the changes.
- The decision is aimed at addressing the council’s budget gap.
- If approved, the new scheme will be published in March 2025 and take effect from April 1, 2025.
Barking and Dagenham Council to Reduce Council Tax Support by 22%
Barking and Dagenham Council has proposed significant cuts to council tax support for low-income residents, aiming to save £3 million in the 2025/26 financial year. The move has sparked concern among residents, many of whom voiced strong opposition during a public consultation.
How Much Will Council Tax Support Be Reduced By?
Under the proposed changes, residents who currently receive an 85% discount on their council tax bill will see this reduced to 63%. The reductions will apply to income bands 1-4, with Band 5 seeing a smaller 5% reduction, while Band 6 will be removed altogether. Pensioners, however, will remain unaffected by the proposed adjustments.
Why Is the Council Reducing Tax Support?
The council aims to balance its budget for the upcoming year by cutting tax support. In recent years, it raised the maximum discount from 75% to 85% in response to the cost-of-living crisis. However, rising financial pressures have led the council to consider scaling back support to help close its budget deficit.
What Did the Public Consultation Reveal?
A consultation held between December 2024 and January 2025 found that most residents were strongly opposed to the proposed cuts. One resident stated, “Council tax support is for the lowest paid and poorest in the borough, why are the council targeting these people?” Another expressed frustration, saying, “It’s really unbelievable to increase bills while we are suffering a lot with inflation.”
A third resident raised concerns about the discretionary fund, which is set to receive £500,000 under the new plan. “The discretionary funding is not sufficient to help all the residents who are being made worse off. You need to keep the current scheme as everyone is already struggling.”
What Happens Next?
Cabinet members will vote on the proposal during a meeting on Tuesday, February 25. If approved, details of the new scheme will be published in March 2025, with the changes set to take effect from April 1, 2025.
How Can Residents Stay Updated?
For further updates, residents are encouraged to follow local news and official council announcements. MyLondon provides daily news updates and newsletters for those looking to stay informed on this and other local issues.
