Low-Income Families Could Be Hit By Council Tax Increase

New research suggests that most councils in England pass on a 10% benefit funding cut to households, who will see a rise in council tax.

From April a typical council tax bill could rise by between £100 and £250 a year, with some possibly rising by as much as £600, the Resolution Foundation says.

The think tank’s new report coincides with the deadline for local authorities to submit plans for changing council tax benefit.

Responsibility for the benefit is being moved from the government to local councils, however, councils say they have not been given enough freedom to manage the changes.

In Wales, the cut is being absorbed by the government, and not passed on to local authorities.

In Scotland, the cost is being shared between councils and the Scottish government, maintaining support for low-income residents.

But England’s 326 councils could be left with a shortfall if they intend to maintain the level of existing payments.


Related UK National News Stories
Click here for the latest headlines.

11 January 2005
Campaign launched to improve uptake of council tax benefit
The Government has launched a campaign encouraging pensioners in England, Scotland and Wales to check if they are paying too much council tax. Adverts in the national press carry the message 'cut your council tax – find out if you should be paying less.
18 September 2003
Charity groups demand reform of council tax charges
Help the Aged and The Royal British Legion have joined forces today to demand a reform of council tax and Council Tax Benefit. The two charities say that "annual inflation-busting" increases in council tax "unfairly discriminate" against older people, whose incomes tend to be fixed or linked to inflation.
21 March 2007
Council tax report recommends changes
People living in the most expensive properties in England should pay more council tax, a report has recommended.
31 March 2005
Lib Dems pledge to scrap 'unfair' council tax
The Liberal Democrats have vowed to scrap the "unfair" council tax, on the 15th anniversary of the poll tax riots. The party said that the council tax should be replaced with a local income tax, based on the ability to pay.
12 August 2013
Final Round Of Benefit Caps Begins
The final round of benefit caps that have seen benefit claims restricted to £500 a week for couples and those with children and £350 for single people is to come into effect today, in those council areas affected by the scheme.