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Hundreds of residents could benefit from a relief fund designed to protect households earning less than £60,000 a year from the ongoing impact of the cost of living crisis.
The fund will offset the 2.99 per cent increase in council tax for eligible households and sits alongside the Tower Hamlets Council’s long-established Council Tax Reduction Scheme (CTRS), which provides up to a 100 per cent discount for residents on the lowest incomes.
Under the Council Tax Cost of Living Relief Fund, households with a combined income below the eligibility threshold of £60,000 and who are not already receiving council tax support will not pay the increase, helping them keep more money in their pockets for everyday essentials.
The initiative is part of the council’s wider commitment to supporting residents through ongoing economic challenges and tackling inequality across the borough.
Lutfur Rahman, Executive Mayor of Tower Hamlets, said:
"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."
"While council tax is essential to funding services residents rely on everyday – from waste collection and libraries to schools and community services – we are committed to keeping the burden on local households as low as possible."
Cllr Maium Talukdar, Deputy Mayor and Cabinet Member for Tackling Inequality and the Cost of Living, said:
"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."
To apply visit the Council Tax Cost of Living Relief Fund page.
Find out about the wider package of support available to residents including free summer activities, support with food costs, and support for students such as university bursary grants on our Cost of Living Help webpage.
Posted on Friday 7th August 2026