People in council housing, sheltered accommodation and hostels could see their rents rise by more than £100 from April.

On Wednesday, February 16, Havering’s cabinet agreed a housing budget which set out a 4.1 per cent rise in rates, which would mean an average increase of £104.88.

A full council meeting on March 2 will decide whether to approve the measure.

It will also be discussing a proposed Havering council tax hike of 2.99 per cent and a 400-role reduction in council staff.

Labour group leader Keith Darvill warned the 45pc of council tenants who are working and do not receive benefits will be hit hardest by the hike.

Residents on full housing benefit or universal credit will see their allowances rise to match the increase so will be “protected,” according to the approved Housing Revenue Account report.

This comes amid an imminent cost of living crisis, which is expected to see household expenses soar.

Cllr Joshua Chapman, cabinet member for housing, said the local authority will absorb half the cost of the estimated 20pc rise in bills such as electricity, gas and water.

He added: “We are acutely aware of the pressures residents are under due to increased fuel costs. Costs for gas and water have increased by 20pc - we have decided however to only pass half the costs on to tenants to help them through these increases in living costs.”

The report adds: “This still represents a significant saving for our residents given that energy prices are expected to increase by 40-50pc by the spring of 2022.”

The rent rise is linked to the Consumer Price Index (CPI), a statistic calculated by the cost of housing, food, transport and furniture, which rose by 3.1pc up to September 2021.

Between 2015 and 2019 the government forced councils to reduce rents by one per cent a year, and Havering estimates this slashed £8million from its budget “that can never be recovered”.

According to a council analysis of how the rent rises will impact residents, 68pc of tenants receive welfare benefits – this rises to 75pc for those over 65 years old.

The report adds: “The increase in rent and service charges may have a disproportionate effect on those with a lower income, as they may have a lower level of disposable income available to cover this increase.”

The council ward expected to be worst affected is Gooshays, which is in the 10pc most deprived neighbourhoods in the country.

Throughout the winter months and as the cost of living crisis looms, this newspaper has been running an ongoing There With You This Winter campaign, which is keepers readers up to date on all the latest information and helping to raise awareness of support on offer.