David Boothroyd

COUNCIL tenants are facing another massive rent increase in the cost-of-living crisis.

Labour-run Westminster City Council are set to agree to a recommendation of the maximum possible annual rise – of 7.7 per cent – at a meeting of the cabinet on Monday.

It follows last year’s eye-watering rise of 7 per cent that was blamed on “significant financial challenges” caused in part by rising costs in the construction industry.

A report to the cabinet said the city council was “acutely aware that a 7.7 per cent rent increase has the potential to put pressure on household income levels for its tenants, especially in the context of a cost-of-living crisis”.

It added: “A large proportion of tenants are in receipt of housing benefit and are therefore expected to see a corresponding increase to manage the rent increase.

“To help remaining tenants that may require financial assistance, the council has committed to extending its rent support fund into 2024/25 and has made an additional £1.050million available to provide targeted financial support to households in need.”

This is the last year covered by the current national rent policy that includes a “social rent cap”, or SRC.

Meanwhile, housing associations are not obliged to raise rents by the full SRC percentage, but are not allowed to exceed it. But the sector norm is to apply the maximum rise.

In a separate budget report, also being debated by the cabinet on Monday, the council said it has to find £20.2m in savings this year through efficiencies and opportunities to increase income to combat these financial pressures.

It has put the blame for the housing crisis squarely at the door of the government, while also stating that requests for temporary accomm­odation in Westminster have risen by 15 per cent since last year.

The council says it has invested an extra £85million to purchase an additional 270 properties for temporary accommodation.

Council tax is going up 4.99 per cent, the maximum possible rise.

Residents in council tax band D will pay an extra £23.85 a year just for the city council’s element of tax and not including the Greater London Authority “precept”. Westminster has the lowest band D council tax in the country.

The council says it is trying to help the most vulnerable with its cost of living fund providing packages of funding to food banks and charities.

It has also increased the rate of pay social staff receive.

Labour’s cabinet councillors will decide what to recommend before a final decision is taken at a full council meeting on March 6.

Cllr David Boothroyd, cabinet member for finance and council reform said: “Along with other councils across the country, Westminster has to cope with higher costs putting pressure on our local services.

“To ensure we continue offering much-needed support to our most vulnerable residents during the cost-of-living crisis, we need to consider an increase to the general element of council tax.

“We have seen continually rising demand for temporary accommodation, supporting children and providing adult social care. As we have no confirmation from the government on what will happen to their household support fund, which ends in March, we must step in to support residents who could face further hardship.”