Published:  02:36 PM, 30 May 2024

Tower Hamlets Council introduced New fund to help with council tax increase

Tower Hamlets Council introduced New fund to help with council tax increase

Tower Hamlets (LONDON), 26 May: Households with incomes less than £49,500 and not already receiving council tax reduction will be protected from an increase in Council Tax thanks to a new relief fund.

Tower Hamlets Council has introduced a Council Tax Cost of Living Relief Fund to offset a 2.99 per cent rise in council tax.

The new fund will mean those with household incomes of less than £49,500 will not need to pay the increase whilst our established council tax reduction scheme will continue.

The scheme will run for three years and follows a total freeze on Council Tax increases (outside of the Adult Social Care Precept) offered by the council to residents in 2023.

In addition, our established Council Tax Reduction Scheme will continue, which offers up to 100% discount on council tax.  

Since the CTRS scheme was launched in 2013, hundreds of thousands of families have benefited.   

In the financial year ending March 31, council tax reduction has been awarded to more than 20, 400 working age residents and 7,400 pensioners resulting in residents saving more than £32million.

Lutfur Rahman, Executive Mayor of Tower Hamlets said: “In these challenging times, we are committed to protecting our most vulnerable residents whilst ensuring that support is equitable and realistic.

“The money we collect from council tax is used to fund essential services like schools, rubbish and recycling collections and libraries in the borough.”

Cllr Saied Ahmed, Cabinet Member for Resources and the Cost of Living said: “We are one of the few councils to offer a 100% discount for lower-income households through our Council Tax Reduction Scheme. Additionally, our new Cost of Living Relief Fund will mean that households who have less than £49,500 combined income will be protected from any rise in Council Tax.

"For a family who is struggling as a result of the Cost of Living Crisis, having a reduction in council tax means they can use that saving on food, heating, clothes or other essential items.

To apply for the Council Tax Cost of Living Relief Fund visit

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