31/01/2013

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.

(H)


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