Millions face Council Tax rises of up to £600

ReenaSewraz
by Lovemoney Staff ReenaSewraz on 31 January 2013  |  Comments 14 comments

Households face Council Tax hikes of up to £600 a year as some councils in England get set to pass on a 10% benefit funding cut.

Millions face Council Tax rises of up to £600

A typical Council Tax bill will rise by £96 to £255 a year from 1st April, but could go up by as much as £577 a year.

That's according to research from think tank Resolution Foundation, and it's all down to Council Tax Support (CTS) replacing Council Tax Benefit (CTB) in April, with the responsibility of managing who qualifies shifting from the Government to local authorities.

Cutting the funding

The existing system of CTB is means-tested and helps 6 million low-income families with their council tax bills.

The new CTS system will have 10% less funding which is set to save the Government £500 million a year.

And the Resolution Foundation's study suggests almost three quarters of English councils will respond to these cuts by offering a less generous system of support.

2.5 million who are unemployed and pay no Council Tax on the CTB system will now have to start paying between £96 and £255 a year.

The hardest hit will be CTB recipients who are in work, including single parents who work part-time and those on minimum wage who depend on childcare. They will face a hike of up to £577 a year, depending on how far a local council chooses to pass on the cuts.

Pensioners will be fully protected from any hikes so people of working age already on CBT, around 3.2 million, will take the hit as councils struggle to manage the shortfall.

Households in Wales and Scotland won’t be affected as costs will be absorbed by councils and in some cases the Government.

Absorbing the impact

184 of the 326 local councils in England have submitted plans on how they plan to deal with the changes.

Of these 51 will absorb the costs of the new CTS system and residents won't see a change.

But 60 councils have plans for a moderate increase, 26 for a large increase and 39 have submitted plans for a severe increase in council tax bills for residents in need of assistance.

The Government will provide £100 million of support for the local authorities that limit the impact for those on benefits or low incomes.

The changes are part of the welfare reforms designed to tackle the budget deficit.

The news comes as other benefits are set to rise slower than inflation.

More on benefit changes:

Government childcare plans will INCREASE costs!

Child Benefit changes: what you need to know

Benefit reform: all you need to know about the Universal Credit

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Comments (14)

  • johntee
    Love rating 0
    johntee said

    All our governments, irrespective of party, appear to be continually struggling with many major 'irresolvable financial issues' which they then conveniently blame on their predecessors once they come to power. I think this is commonly referred to as a ‘cop-out’ and 'hood-winking'. If I had operated my own business with comparative practises to that of our successive governments I would have been bankrupt in no time, and with no taxpayers to bail me out on demand. Ministers have the best of both worlds, and with total protection. Maybe some ministers may categorize me as a 'pleb' for such observations? Then so be it. However, I'm proud to say I have always kept my 'finger on the pulse' and my eyes were most certainly wide open all the time. I could justifiably challenge our country’s officers to demonstrate the same within their privileged ‘upper crust' roles as administrators?

    Interestingly, I happened to watch Piers Morgan's 45 minute interview on CNN with US Governor Jesse Ventura back in August 2012 (approx) and believe it kind of reflects what's going on generally in politics. It's not just in the USA though, one may tentatively examine whether some of his observations might apply within our own political 'camp'? Governor Ventura, an 'Independent Candidate' in US politics, was highly critical of his country’s political system, with his remedy being the eradication of those who perform in their own interests rather than that of the nations.

    Out of curiosity I've just done a quick search of Youtube and find it's available if “Jesse Ventura vs. Piers Morgan on CNN” is entered into the search box. It might be worth a watch.

    Alternatively please try this link to the said interview.

    http://www.youtube.com/watch?v=MVVsjNdEs7w

    Without prejudice.

    Report on 04 February 2013  |  Love thisLove  0 loves
  • r
    Love rating 98
    r said

    @johntee:

    I have thought for some time that our political system needs refreshing. We seem to have lost most of the honest politicians of yesteryear.

    By reading these columns, one can see so many views and comments that are from people that are so entrenched in either the traditional "left" and "right" camps that logical thought and argument, based on facts, seem to be impossible.

    I would like to see our successful business people offer themselves as MPs for election; I can think of quite a few who are very successful within the country and who I would trust to a larger extent than I do our present and recent MPs.

    Above all, I would like to see politicians that actually support the Brits (what an old-fashioned idea) instead of wandering off into ego-trips of putting the world (and the EU) right.

    r.

    Report on 06 February 2013  |  Love thisLove  0 loves

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