A proposal has been aproved which will see tenants receiving council tax benefit forced to pay a quarter of their annual bill.

In 2013, the government gave local authorities the task of setting how much of rents the benefit will cover.

Some authorities have maintained 100 per cent cover, but Waltham Forest council has opted to increase annual tenants' liability to 15 per cent - three times more than neighbouring Redbridge.

Now the council's cabinet has decided to increase this amount to 16 per cent from April and 24 percent in 2016.

The approved cut in support is lower than the council's original plans, which would have resulted in claimants paying 23 per cent of their bills this year and 32 per cent in 2016, or 27 per cent over a two-year period.

The council re-consulted claimants in December after a High Court ruling found Haringey council's consultation to be flawed and unlawful. 

Chief executive Joanna Kennedy, of anti-poverty charity Z2k, warns it will push further people into poverty. 

She said: "We are disappointed that Waltham Forest has decided to go ahead with what is effectively a tax hike for the borough’s unemployed and disabled residents.

"While the majority of taxpayers have enjoyed a council tax freeze for the past few years Waltham Forest’s poorest will be hit with increases for three years running, meaning the Borough’s scheme will be the second harshest in London by 2016.

"While we understand the coalition’s funding cuts are ultimately responsible, we urge the council to think again about this unfair policy, that will simple serve to drive residents deeper into poverty."