A GOVERNMENT u-turn over a plan to force a dramatic increase in rents for council tenants has been welcomed by tenants and councillors.

But the final bill for tenants in Waltham Forest is yet to be decided.

Initial Whitehall calculations were based on September’s rate of inflation and would have forced a 5.8 per cent rise in rents for many of the borough’s most hard up residents during the economic downturn.

The guideline rate has now been revised down to 3.1 per cent but the council says it is still working out how to pass this saving on to residents.

The council warned that if it did not impose the initial increase it would have to raid a £1 million fund earmarked for improvements to homes.

The labour-led authority took the unusual step of criticising the government and joined a national campaign in an attempt to force a rethink.

Leading councillors lobbied ministers as part of campaign called “don’t Kick us in the crunch”, which is now being hailed a success.

Theresa Spratt, a council tenants who lives with her husband Bruce in Walthamstow, said: "It is definitely good news that we can now look forward to a lower rent increase “Our bills seem to be costing significantly more than they used to. We've just had our fuel bill, I know it was a harsh winter but it was much more than usual.

Cllr Marie Pye, cabinet member for commmunities and housing, said: “We're confident it is good news for our tenants but we still need to assess exactly what this lower guideline figure means for our tenants."

“Local support for the campaign was fantastic from the start. It just shows what can be achieved when the council and residents work together.”

However, John Macklin, the council's Liberal Democrat group leader, hit out at the government.

He said: "This whole embarrassing u-turn by Labour has just served to demonstrate once again how completely out of touch the Government is with the practical realities of this economic crisis.

"Asking local authorities to do their dirty work for them by implementing these rent rises was a cowardly act that put politics before people."