‘Vital’: Council tax to be cut by 95 per cent for thousands of people in hardship

Cllr Diarmaid Ward. Photograph: Islington Council

Council tax support will continue for thousands of low-income families in Islington next year – who will pay just five per cent of their bill.

Politicians from across the political divide united in supporting the cuts for another year – although the opposition said it wanted the bills cut entirely for families facing the biggest financial headaches.

Cllr Diarmaid Ward, executive member for finance, said the move will help 27,000 people in Islington.

He put the blame for the cost-of-living crisis firmly at the door of Number Ten Downing Street and said factors like government cuts and “the longest period of wage stagnation in history”.

Last year, the Labour-controlled council put £676,000 into the scheme to increase the discount from 90 per cent to 95 per cent. It has now pledged to keep it at this level for the next financial year.

It consulted residents on council tax cuts in 2016 and 2021.

Cllr Ward said: “We will cut council tax bills by 95 per cent for the lowest-income households in the borough. This will save some of the least well-off people an additional £42 a year.

“Extra money is vital when paying the electricity bill, buying travel cards and putting food on the table for families.”

There is a £100 council tax discount for older people too.

The 95 per cent cuts for working-age residents are estimated to cost Islington Council £16m a year.

Council leader Kaya Comer-Schwartz said: “So many people told us how much they valued that support. It is only through supporting the least well-off people in our borough that we can truly make Islington a more equal place.”

The Town Hall gave working people £150 off their council tax bills as part of Covid hardship support in 2020 and 2021.

The council also has a £2.1m residents’ support fund to help people with costs like food, fuel and rent.

People can make claims to the council, job centre or Department of Work and Pensions, and claims for Universal Credit will be treated as an application for the support.

The move was backed by the Green opposition at the full council meeting last week.

Their leader Caroline Russell said she would like to see a 100 per cent reduction for those struggling the most. She said the Greens will present ways to achieve this in their alternative budget suggestions next year.

“We all of us know that people are really struggling financially,” said Russell. “That council tax bill, even if it’s only five per cent if people are struggling with their fuel and everything else, if we could take that burden away from them it will be even better.”

Those with second homes or empty properties in Islington were warned there will be no council tax discount.

Owners of empty buildings left vacant for between two and five years will be charged a premium of 100 per cent of council tax.

The council will also slap a 200 per cent council tax bill on homes left empty for between five and 10 years, rising to 300 per cent for any sitting empty for longer.