A Labour run council has been told to ‘hang its head in shame’ for ‘attacking the sick and disabled’ after making controversial rule changes surrounding PIP payments and council tax relief.
Currently, Leicester City residents qualify for council tax support based on their precise income.
But from April, the unitary authority will count PIP payments as income, pushing up people’s earnings and therefore decreasing the amount of council tax relief they receive.
The council will also means test people’s right to council tax support via income bracket, not precise income, which they say will make the system ‘fairer and simpler.’
But some affected residents are outraged as the changes mean their bills are set to quadruple from April.
Opposition councillors have reacted furiously to these measures too, branding the move as an ‘attack on people’s living standards.’
Conservative Councillor Paul Westley said: “It's fundamentally wrong. They’re targeting people that are sick [and] disabled, and not listening to them.
“People don't have the money. They just cannot afford it [...] Labour should hang their heads in shame for what they're doing.
Coun Westley argued Labour had betrayed its roots, stating: “The people that put them in must be absolutely outraged for what they've done to them.
“They’ve gone back on their roots.”
Leicester resident Kayley Smith said: “I'm on PIP but well over half of it goes towards my Motability car to get around. The other half is to fund the car and other things like the electric for my lift.
“Why they want to class the whole amount as income and expect us to still pay a full council tax bill is beyond me. I might just have to give up my car and be housebound.”
But one resident agreed with the changes, stating: “The fact is PIP is income. We are all struggling, the taxes on everyone and everything is crippling us all. The free-living way of the lefties has to be paid for somehow.”
All three of Leicester City’s opposition parties have slammed the move, calling it ‘cruel.’
However, Labour Mayor Sir Peter Soulsby says it is not legally possible to change the scheme for 12 months.
Soulsby acknowledged the rule change could leave some struggling and has increased the city’s discretionary relief fund by £250,000 for the year resultingly.
The move is expected to save the council £2.8million a year, with a consultation in late 2024 finding 13,500 council tax relief claimants would be worse off by £325 a year.
The council say this is necessary to avoid declaring bankruptcy as it struggles to cope with soaring costs.
It currently spends £14.9million on council tax relief every year.
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Commenting when the rule changes were just proposals, former Deputy Mayor Sarah Russel said: “These proposals are intended to make our council tax support scheme simpler and fairer and increase support for those households who need it the most.
"At the same time, we need to respond to the severe financial pressures placed on the council by the previous government.
"I understand that for some of the people who might have to pay more towards their council tax, this could be a struggle."
Russel resigned from her post in January to take up a new role managing Work and Pensions Secretary Liz Kendall’s office instead.
Changes to council tax relief come as a blow to Leicester residents as Leicester City Council are raising council tax by 5 per cent for 2025/2026, the maximum legal limit without triggering a referendum.
It means for an average Band D property in Leicester, council tax bills will hit £2,407.72 in 2025/26, a rise of £115. That’s £200 per month in council tax.
Sir Peter Soulsby, Labour Mayor of Leicester since 2011, blamed the government for having to make the council tax rise, saying: "We are in a somewhat more favourable position because while we are approaching a cliff edge, the management of our budget over recent years has been very far-sighted.
"We do find ourselves here despite the responsible steps we have taken over the past 10 years to control our spending and produce balanced budgets.
"We haven't, unlike some authorities, made unwise investments. We have built up reserves and we've avoided crisis cuts."
“This year, the pressures are going to be even more severe if we are to avoid going over that cliff edge some 12 months from now.
"It's not a situation of our making, but we can't shy away from the harsh reality this is going to be a very, very difficult year for us with some very difficult decisions to make."
The unitary authority of Leicester City Council has been Labour run since 2007. Its last election was held in May 2023, with Labour suffering heavy losses despite a deeply unpopular Conservative administration in Westminster.
Labour returned 31 councillors, a loss of 22 seats, while the Tories returned 17 councillors, a gain of 17, bucking the national trend.
The next elections are due in May 2027.
Leicester City Council has been approached for comment.
Find Out More...
Currently, Leicester City residents qualify for council tax support based on their precise income.
But from April, the unitary authority will count PIP payments as income, pushing up people’s earnings and therefore decreasing the amount of council tax relief they receive.
The council will also means test people’s right to council tax support via income bracket, not precise income, which they say will make the system ‘fairer and simpler.’
But some affected residents are outraged as the changes mean their bills are set to quadruple from April.
Opposition councillors have reacted furiously to these measures too, branding the move as an ‘attack on people’s living standards.’
Conservative Councillor Paul Westley said: “It's fundamentally wrong. They’re targeting people that are sick [and] disabled, and not listening to them.
“People don't have the money. They just cannot afford it [...] Labour should hang their heads in shame for what they're doing.
Coun Westley argued Labour had betrayed its roots, stating: “The people that put them in must be absolutely outraged for what they've done to them.
“They’ve gone back on their roots.”
Leicester resident Kayley Smith said: “I'm on PIP but well over half of it goes towards my Motability car to get around. The other half is to fund the car and other things like the electric for my lift.
“Why they want to class the whole amount as income and expect us to still pay a full council tax bill is beyond me. I might just have to give up my car and be housebound.”
But one resident agreed with the changes, stating: “The fact is PIP is income. We are all struggling, the taxes on everyone and everything is crippling us all. The free-living way of the lefties has to be paid for somehow.”
All three of Leicester City’s opposition parties have slammed the move, calling it ‘cruel.’
However, Labour Mayor Sir Peter Soulsby says it is not legally possible to change the scheme for 12 months.
Soulsby acknowledged the rule change could leave some struggling and has increased the city’s discretionary relief fund by £250,000 for the year resultingly.
The move is expected to save the council £2.8million a year, with a consultation in late 2024 finding 13,500 council tax relief claimants would be worse off by £325 a year.
The council say this is necessary to avoid declaring bankruptcy as it struggles to cope with soaring costs.
It currently spends £14.9million on council tax relief every year.
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Commenting when the rule changes were just proposals, former Deputy Mayor Sarah Russel said: “These proposals are intended to make our council tax support scheme simpler and fairer and increase support for those households who need it the most.
"At the same time, we need to respond to the severe financial pressures placed on the council by the previous government.
"I understand that for some of the people who might have to pay more towards their council tax, this could be a struggle."
Russel resigned from her post in January to take up a new role managing Work and Pensions Secretary Liz Kendall’s office instead.
Changes to council tax relief come as a blow to Leicester residents as Leicester City Council are raising council tax by 5 per cent for 2025/2026, the maximum legal limit without triggering a referendum.
It means for an average Band D property in Leicester, council tax bills will hit £2,407.72 in 2025/26, a rise of £115. That’s £200 per month in council tax.
Sir Peter Soulsby, Labour Mayor of Leicester since 2011, blamed the government for having to make the council tax rise, saying: "We are in a somewhat more favourable position because while we are approaching a cliff edge, the management of our budget over recent years has been very far-sighted.
"We do find ourselves here despite the responsible steps we have taken over the past 10 years to control our spending and produce balanced budgets.
"We haven't, unlike some authorities, made unwise investments. We have built up reserves and we've avoided crisis cuts."
“This year, the pressures are going to be even more severe if we are to avoid going over that cliff edge some 12 months from now.
"It's not a situation of our making, but we can't shy away from the harsh reality this is going to be a very, very difficult year for us with some very difficult decisions to make."
The unitary authority of Leicester City Council has been Labour run since 2007. Its last election was held in May 2023, with Labour suffering heavy losses despite a deeply unpopular Conservative administration in Westminster.
Labour returned 31 councillors, a loss of 22 seats, while the Tories returned 17 councillors, a gain of 17, bucking the national trend.
The next elections are due in May 2027.
Leicester City Council has been approached for comment.
Find Out More...