Labour blocks cost-of-living help while hiking bills in Merton

5 Feb 2026

Last night, Labour councillors voted down plans to help over 20,000 Merton households claim £71 million in unclaimed benefits and support. At the same meeting, Labour pushed through hundreds of above-inflation fee rises, with some charges jumping by up to 33%. The vote comes as child poverty remains among the highest in London in parts of Merton, with four in ten children in Mitcham and Morden living in relative poverty.

Merton Liberal Democrats have slammed Labour councillors for voting down two practical proposals designed to tackle the cost-of-living crisis and child poverty, while simultaneously pushing through steep increases in council charges and fees.

At last night’s council meeting (Wednesday 4th February 2026), Labour voted against a Liberal Democrat motion to boost take-up of unclaimed benefits and social tariffs worth millions of pounds to local residents, and blocked a separate proposal calling for restraint on above-inflation council fee rises.

Liberal Democrat councillors warned that an estimated £71 million in support will go unclaimed in Merton next year, including Universal Credit, Pension Credit, energy bill support and more. The Lib Dems say Labour’s failure to act comes at a time when child poverty remains stubbornly high. Mitcham and Morden still has one of the highest child poverty rates in London, with around four in ten children living in relative poverty. A recent MoneySavingExpert investigation* previously found incorrect information on Merton Council’s website about eligibility for the live-in carer Council Tax discount, meaning many carers may have missed out on the support they’re entitled to.

Labour councillors also blocked a Liberal Democrat challenge to hundreds of above-inflation council fee increases. Charges for parking, sports pitches, home improvements and allotments will rise by up to 33%, on top of maximum Council Tax hikes, pushing the average household bill above £2,000 a year during a cost-of-living crisis.

The Liberal Democrats argue councils have a responsibility to turn warm words into practical help by fixing bad information, actively promoting benefit take-up, and resisting unnecessary price hikes. Merton Lib Dems will continue to push for a fairer and more affordable borough, where tackling child poverty is treated as a priority, and where residents are supported to get the help they deserve, rather than paying more while missing out.

Commenting, Councillor Anthony Fairclough, Leader of Merton Liberal Democrats, said:

“Labour talks about the cost-of-living crisis, but their choices tell a different story. They’re putting charges up with one hand and refusing to help residents access support with the other.”

“More than 20,000 households are missing out, often not because they are ineligible, but because the system is complex, information is unclear, or claiming feels stigmatised. This was about getting money people are already entitled to into their pockets. Other councils are doing this successfully. Labour chose not to try.”

“We need a fairer and more affordable Merton - one that properly confronts the cost of living crisis so people can afford to live here.”

Further reading:

The meeting of Merton Council can be watched here (1.33).

The Merton Liberal Democrat motion on unclaimed benefits and the motion on council charges can be found in the Council meeting agenda here.

The Merton Liberal Democrat motion on unclaimed benefits and the motion on council charges can be found in the meeting agenda attached.

*https://www.moneysavingexpert.com/news/2026/01/carer-council-tax-investigation-martin-lewis/

The increases in fees and charges are all listed here:

https://democracy.merton.gov.uk/documents/s57634/Appendix%201.pdf

Merton residents continue to face a sustained cost-of-living crisis, yet Policy in Practice estimates that benefits worth £71 million will go unclaimed in Merton in 2025/26, including:

a. £37.6 million in Universal Credit

b. £8.7 million in social tariffs and energy support

c. £6 million in Pension Credit

d. £4.7 million in Carer’s Allowance

e. £128,000 in Healthy Start Vouchers

· There are at least 20,526 eligible claimants for additional support in Merton, with an average missed claim of £3,477.

· 90 percent of Merton residents eligible for Social Broadband Tariffs are not claiming their discounts, which would be worth £4.1 million across the Borough.

· Since last year, local authorities using the Low-Income Families Tracker (LIFT) from Policy in Practice have helped 62,000 households to claim an extra £77 million per year.

· A recent MoneySavingExpert investigation found that information on Merton Council’s website about the live-in Carer Council Tax discount incorrectly indicated that far fewer people were eligible than was in fact the case.

On 15 December 2025, Cabinet chose to approve the 2026/27 Fees and Charges Report, increasing over 700 fees for residents and businesses in Merton. The discussion lasted just three minutes and made no reference whatsoever to the cost-of-living crisis.

· Some of the choices made by the Cabinet include:

· 257 fee increases described as “inflationary”, which exceed CPI+1 (4.2%), the Council’s own benchmark for inflation-linked rises;

· Home improvement application fees are up 29%, a rise of up to £264;

· Residents’ controlled parking permits are up 7%, more than twice the rate of inflation;

· Car park charges are up 5-33%;

· Pitch hire for football, cricket, and other activities are up above inflation;

· Allotment water charges are up 33%.

· Merton Labour has consistently adopted the full 5% Council Tax increase permitted by Government, taking average bill above £2,000 a year, and the Labour Government plans to bring in an additional £2,500-£7,500 surcharge on some homes from April 2028.