Poorest families to pay more council tax with move blasted for hitting 'most vulnerable' in Dudley

Struggling families currently only have to pay 20 per cent of the total council tax bill under a relief scheme.

But they will now have to find the extra cash as the amount they have to pay goes up two per cent from April 1 next year.

Councillor David Sparks, cabinet member for finance and legal services at Dudley Council, said it was a cut that had been 'forced' upon them by the government 'reducing the ability' of Dudley to meet its funding gap.

The move was approved by councillors at full council meeting on Monday and is expected to save the authority £150,000 in a year.

Councillor Sparks said: "The council tax reduction scheme will go up in Dudley this is because when the government in 2013 transferred the payments of housing benefits through the local authorities they reduced by ten per cent the amount of money we had to plan these benefits.

"Council tax payers in Dudley have been subsidising this funding gap for several years.

"Essentially this is a government funding cut. This government are reducing the ability of Dudley to meet its funding gap and are forcing us to make cuts and increase council tax.

"We have no option but to reduce the council tax reduction scheme. This is not a cut we would choose to make – we have been forced to do so."

Voicing his opposition to the plans, Conservative councillor Steve Clark, shadow member for finance, labelled the move as 'very disappointing' adding that those 'most vulnerable' would be affected.

Earlier this year two-thirds of people who took part in a consultation about the changes stated they were against the move.

A total of 113 of 280 people said they 'strongly disagreed' with the proposals and 68 said they disagreed. Only 38 said they 'strongly agreed', while 60 said they agreed.

Currently those eligible in an average Band D property pay £267.56 annually towards the full charge of £1,337.8. Next year's council tax has yet to be set, but if it remains the same it will rise to £294.32.

The council currently grants around £19 million in council tax reduction, while still collecting around £120m from the rest of the borough.