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Labour councillors told Wednesday’s full council meeting that help under the Localised Council Tax Support Scheme was vital for families struggling to make ends meet.
The scheme, which currently benefits more than 6,500 working-age residents, including those in the lowest-paid jobs, were passed despite opposition from most Conservative councillors.
The Conservative Government abolished the national council tax support scheme in 2013, putting the onus on local councils to provide help.
Lancaster is one of only a small number of councils which continue to offer 100 per cent support for the lowest income households with their council tax bills.
Cllr Carla Brayshaw, deputy leader of the Labour group, said: “This help is needed now more than ever amid the Government’s chaotic roll-out of Universal Credit, which has cut vital financial support for the least well-off including disabled people, some single parents and those in low-paid work.
“It has left people struggling to afford to heat their homes, and feed their children, sadly leaving them to resort to foodbanks in some cases – a situation the Conservative MP for Morecambe and Lunesdale recently described as a ‘success’ in Parliament.
“Bills can be a real source of worry for families in this situation, quickly tipping them into debt and there has been an alarming rise in in-work poverty.
“Labour councillors therefore make no apologies for doing what we can to help those who need help the most and we are proud to be maintaining this support.”