Redbridge councillors have agreed to keep support for residents struggling with council tax the same.
More than 14,000 households in Redbridge are offered support with their bills, according to a report published last week.
In order to qualify for the council tax support scheme, they must meet a particular criteria.
Working-age households where someone receives disability benefits such as PIP will get the highest support receive a 73% reduction in their council tax.
Unemployed adults receiving Universal Credit or other benefits will pay between 40% and 50% of their bill, depending on whether they have children.
Other low-income households receive discounts between 36% and 46%, with higher support offered to families.
The scheme was backed by the Labour administration at a full council meeting last night (22 January).
“The council is committed to reducing poverty and will continue its tackling poverty initiatives to ensure it helps those residents most in need of support,” executive director of resources David Kuenssberg wrote in the report.
Alongside “eradicating child poverty” by 2040, Redbridge plans to reduce the number of residents needing support by “helping them to become financially resilient and, where appropriate, [supporting] them into work or better paid work”.
There are around 14,240 families being supported by the scheme. Of those, about 9,100 are working-age households and 5,140 are pensioners.
However, Redbridge Council is struggling with a growing overspend, which is estimated to be around £27million in November.
It is facing a £28.2m deficit in its ‘people’ directorate, which covers public health, social care and education.
Last year, offering the reduced rates cost the town hall around £18m.
The Labour-led council in neighbouring Waltham Forest voted to cut its support scheme in 2024, amid similarly dire financial projections.
Low-income residents now pay as much as 43% of their total tax bill, up from 15% previously.
The controversial move led to the suspension of Labour councillor Tom Connor, who refused to back the cuts.
Council leader Grace Williams said then the borough needed to “balance our budget” in order to survive a “deep” financial crisis and £23m deficit.
