PENSIONERS HIT HARDEST BY COUNCIL TAX

FIRST PUBLISHED BY: THIS IS MONEY

SOARING COUNCIL TAX BILLS ARE HITTING OLDER PEOPLE HARD WITH THOSE AGED OVER 75 SPENDING TWICE AS MUCH OF THEIR INCOME ON THE TAX AS YOUNGER HOUSEHOLDS.

Bills are hitting older people hard

RESEARCH SHOWED TODAY: The average Council Tax bill in Great Britain has risen by 121% since 1993/1994, significantly outstripping the estimated 82% increase in average income after tax during the same period, according to the Halifax. 

The rise has had a particularly big impact on pensioners, with the tax now accounting for 6% of total spending for people aged over 75, and 5% for those aged between 65 and 74, compared with just 3% for the under 50s. Areas where there are most pensioners have also seen some of the steepest rises in Council Tax charges. 

Bills in the 20 English local authorities with the highest proportion of pensioners have soared by an average of 149% since 1993/1994, compared with a national average of 121%. Chichester in West Sussex has seen the biggest jump among these 20 local authorities, with the average cost of Council Tax soaring by 173% since 1993/1994 to an average £1,244 a year.

Bills in Christchurch in Dorset, where 30% of the population are aged over 65, have also risen steeply, increasing by 171% to £1,193. Overall, 18 of the 20 local authorities in England with the highest proportion of pensioners have seen their Council Tax bills rise faster than average. But Halifax said its calculations of average Council Tax bills did not take into account the means-tested Council Tax benefit that some pensioners received, as there was no published data on this.

There are currently around 2.4m pensioners who receive the benefit, getting an average rebate of £619 a year. Means tested age-related payments - one-off payments worth up to £200 - have also not been included in the calculations. Tim Crawford, group economist at Halifax, said: 'Clearly Council Tax is an important issue for older residents. The tax accounts for a higher proportion of their spending than for younger age groups.

'Pensioners' incomes have not kept pace with the significant growth in the rate of Council Tax. 


'The Government provides help for many pensioner households to pay Council Tax. Unfortunately these are means tested schemes and many pensioners will not benefit from them. Eligible households need to make sure they are claiming these benefits.

READ WHAT: ERIC PICKLES ‘SECRETARY OF STATE’ SAYS ABOUT OVER-CHARGED COUNCIL TAX. 

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