Thousands of council tenants in Dudley are facing an average increase in their rent of 7.7 per cent.

The rise, under proposals announced today, is the biggest in almost a decade for residents living in the borough’s 24,000 council homes. The increase is the equivalent of an average £5.54 per week for tenants.

Council leaders say the proposed increase is calculated using the Government’s formula based on inflation and the size and value of council properties. They said they were committed to looking at ways to reduce energy bills and offering advice to residents struggling to make ends meet.

Cabinet member Councillor Adrian Turner said: “Since 2002 our rent increases have been controlled by a central government formula. Despite this proposed increase of 7.7 per cent, our rents compare favourably with other local authorities.

“However, we are lobbying local MPs about the implications of a rent formula that is linked to inflation and the impact that it will have on local residents.

“We know times are difficult for people, and we are looking at ways of mitigating the increase by investigating ways we can invest in energy efficiency schemes to help keep tenants energy bills down, as well as providing energy advice and teaming up with the Citizens Advice Bureau and providing a debt advice service.”

The proposed increase in rent will be discussed and set by councillors in February.

It comes as plans to give councils more control over the money they can spend on council homes are unveiled. Government funding will be based on an individual council’s financial position rather than being based on assumption about its spending.

It will enable councils to make long-term financial plans which will enable them to manage major improvement programmes in the most efficient way.