Council tax reduction scheme consultation
This consultation ended 2 December 2016 and the new scheme started on 1 April 2017.
We are committed to protecting vital services that residents rely on and supporting the most vulnerable in our society; but significant and ongoing funding cuts along with growing pressures on services mean that we must make tough choices about what is important to Tower Hamlets.
Cuts by the government mean that we must find £58m of savings by 2020. That is the equivalent of £1 for every £6 we spend, and it is on top of £138.3m already saved since 2010.
We are considering a range of options including what part of the savings could come from reducing the amount of financial help provided to residents on low incomes through the Council Tax Reduction Scheme. Most other councils have already done this but we have, up until now, avoided this.
If these savings are not made the savings will have to be found from somewhere else.
We have identified two options that could help us bridge the funding gap and we need your views to help shape our decisions going forward.
We have already thought about other options that we could pursue. This included whether we should consult on changes to disability benefits and child benefit which are currently disregarded for Council Tax Reduction, but did not feel this was appropriate.
What is Council Tax Reduction?
Council Tax Reduction is a discount for council tax. The level of discount is based on the income of the household. Currently the maximum discount is up to 100% of council tax for working age households and for pensioners.