MP claims new council tax support scheme has left residents facing ‘unaffordable’ increases

The overhauled system, providing relief from council tax for the poorest and most vulnerable households, created a banded scheme for the first time.

Changes approved in January by all councillors mean 7,771 residents are now receiving less support.

The previous scheme was costing the council £28 million a year. Conservative council bosses said the new system was fairer and targeted support at the lowest income houses, with 6,235 people receiving a higher level of support.

But speaking in Parliament, Labour MP for Blyth and Ashington Ian Lavery said: “Changes to Northumberland county council’s council tax support scheme have left some low-income residents in my constituency facing unaffordable increases, some of nearly £100 per month. Those impacted are the most vulnerable in our communities

“Imagine what it is like, when they are already struggling to survive through the cost of living crisis, to be lumped with paying an extra £100 per month? That is pressure.”

The long-serving MP also called for a debate on the “impact that local authorities can have, both positively and negatively”, on the financial wellbeing of residents.

Responding, Leader of the House and Tynemouth MP Sir Alan Campbell said: “My honourable friend is right to draw attention to that decision by Northumberland County Council. It cannot be right that less well-off households in his area are being asked to pay more.

“This Government are taking action so we can keep costs down for everyone and provide support for those who need it more. But the lesson that people need to learn, unfortunately by experience, in areas such as his is this: do not vote for a Tory or a Reform council.”

Northumberland Labour voted to bring in the changes in January. At the time, leader Scott Dickinson said: “Everybody has worked really hard, listened to members’ concerns and came up with a scheme that really supports households and makes sure the most vulnerable are supported in the way we would like to see. We will be supporting it.”

Responding to Mr Lavery’s comments, Northumberland County Council’s cabinet member for finance Coun Nick Oliver said: “Ian’s Labour colleagues at the Council voted to implement the new banded scheme along with all other councillors – bringing us in line with other Labour councils in the region.

“The most in need households will now pay no council tax, and some households are being asked to make a greater contribution as benefit payments rise and the two child cap is withdrawn. Some people will qualify for various forms of support we have put in place.”

The Conservative councillor also hit out at the Government over recovery grant funding and changes to taxes on business.

He added: “Northumberland was the only council in the North East not to receive any Recovery Grant funding from the Labour Government this year and our overall settlement did not even come close to covering the inflationary pressures we face. We called upon Ian Lavery and our other MPs to make the case for our residents – and there was no response.”