Council consulting on proposed changes to council tax support which could see some families lose £25 per week, reports Simon Allin, Local Democracy Reporter

Conservatives in Enfield have criticised a proposed shake-up of council tax support that would see some households lose up to £1,455 per year.

The opposition group has called on the Labour administration to abandon the proposals, which are expected to hit more than 6,500 low-income households – most of whom live in the east of the borough.

One-in-three households in Enfield currently receives council tax support, which is funded by the local authority at a cost of £38million. The scheme reduces bills by up to 75.5% for some working-age households.

Under the proposed changes, a banding scheme based on net earned income and household type would be introduced for households claiming Universal Credit. The council says this would help to address “inequity” in the system, which currently sees Universal Credit claimants who are in work receive more council tax support and pay less council tax then those who are working but claiming other benefits such as working tax credit.

According to the council’s equality impact assessment, the changes would reduce council tax support for approximately 6,500 working households by an average of £220 per year, or £4.23 a week. The report adds that the changes mean the council would avoid spending an extra £800,000 when the remaining 2,500 working households on legacy benefits migrate to Universal Credit.

The report reveals that the majority of the affected households would be in the east of the borough, in areas such as Edmonton, which have higher levels of deprivation. Although more than 4,000 of those affected stand to lose less than £5 per week, the report states that 190 households would lose between £15.01 and £25 per week.

James Hockney, the Conservative group’s shadow cabinet member for finance, said civic centre officials had confirmed that the biggest loss resulting from the changes would in fact be £27.80 per week.

Cllr Hockney said: “No longer can Enfield Labour lecture about the cost of living. They have already increased many costs to residents including council tax, fees and charges, green bin tax and all the impacts of the LTNs [low-traffic neighbourhoods].

“These proposals are an attack on some of the lowest income working households in the borough which could hit 6,500 households – the majority of which are families. The Labour administration should be utterly ashamed of themselves”.

Tim Leaver, Enfield Council’s cabinet member for finance and procurement, said: “Enfield has the highest number of households receiving council tax support in London. The cost of the scheme provided by Enfield to support low-income households is one of the highest in the country.

“This council remains committed to maintaining its £38m council tax support scheme. We are doing everything we can to protect and support the most vulnerable, despite being forced to make £200m in savings due to government funding cuts over the last decade and the unprecedented financial pressures faced by all local authorities as a result of rising inflation and the cost-of-living crisis.

“The council is considering a change to the existing support programme by introducing an earned income banded scheme for households in receipt of Universal Credit. The aim is to make the scheme a fair and equitable assessment of need and to modernise the current system.

“Of the 35,500 cases, 6,500 households will see a change. For these households, the council will support residents in a number of ways, including one-to-one sessions with our debt and welfare advice team. This team supports vulnerable residents to maximise their income and get their full entitlement to welfare benefits and advice.”

The council is holding a public consultation on the proposed changes, which will run until 6th January and is available on the council website here.

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