Proposals to end council tax for some of Haringey’s poorest residents will go to a public consultation, as Cabinet continues its work to create a fairer borough.
All residents will be asked for their views on plans to update Haringey’s Council Tax Reduction Scheme, which would ensure that working age claimants in the scheme who have children will pay no or less council tax. Overall, the proposals would provide more financial support to more than 6,000 families who currently receive a Council Tax Reduction. The scheme would also be updated to support many other working age claimants too – acknowledging the rising cost of living and national welfare changes.
Last night, at an additional August Cabinet meeting, Haringey Council agreed to launch the 10-week consultation, which will run from September 3 to November 12. 
Cabinet Member for Finance, Cllr Patrick Berryman, said:
Addressing the inequality in our borough was a key part of this new administration’s manifesto. In 2013 when the government decided to abolish council tax benefit, this hit some of Haringey’s least well-off residents the hardest, and these proposed changes look to redress that. Haringey has faced government funding cuts of £78million since 2013, which has put huge pressure on our services and budget. Despite this, we are absolutely committed to ensuring that fairness is the cornerstone of all that we do. The Council Tax Reduction Scheme proposals would reinstate essential support to some of our borough’s most vulnerable residents. I encourage everyone to have their say in our consultation.
Haringey’s Council Tax Reduction Scheme was introduced in 2013 to support struggling residents after the government abolished council tax benefit. Currently, working age claimants with children receive up to an 80.2% reduction on their council tax – meaning they pay a minimum contribution of 19.8% of the usual council tax. The consultation will propose that the maximum level of support for these families should be extended to 100%, so that some residents do not pay at all. Under the proposals, those on prescribed disability benefits would also continue to receive up to 100% support. Pensioners already receive up to 100% support and this will continue.
Since 2013 the government has made changes to national welfare, which reflect the rising cost of living for residents. As a result, the council also needs to make further updates to its reduction scheme – including updating the amount the government says people need to live on each week, updating income brackets, updating deduction rates and updating the language.
This alignment with national welfare changes is intended to ensure many other vulnerable and low-paid residents – whether in or out of work and regardless of whether they have children – will also be better off.
The changes – which will require feedback from the Greater London Authority – would cost the council an estimated £1.6million in 2019/2020, which Haringey would look to cover through its council-wide General Fund Budget.
The findings of the consultation – which will also set out alternative options – will inform the final scheme, which will be put to members to consider at Full Council in January 2019, to come into effect from April 1.
The consultation will include drop-in sessions, paper copies of the consultation in all of the borough’s libraries and two Customer Service Centres, and an online consultation form via the council’s website – all of which will be available from September 3.
Read the Cabinet papers here
