LONDON PARISH BACKS BID TO BECOME 'PEOPLE'S REPUBLIC OF QUEEN'S PARK'

FIRST PUBLISHED BY: THE GUARDIAN 

THE CREATION OF LONDON'S FIRST PARISH COUNCIL IN 50 YEARS WINS SUPPORT OF 68% OF VOTERS

The Queen's Park parish council campaign was backed by Westminster North Labour MP Karen Buck. Just days after the launch of the campaign to persuade Scots to vote for independence, the residents of a patch of north London have said "yes" to some autonomy of their own. 

Following a referendum campaign which was little noticed outside of the neighbourhood it concerned, the wheels have been set in motion for the creation of London's first parish council in 50 years – or what may yet come to be known with tongue in cheek as the People's Republic of Queen's Park.

While Conservative-controlled Westminster council was quick to claim the result on Monday was a seal of approval for the government's localism agenda, the campaign in the Queen's Park ward in fact drew support from across the political spectrum, including from the constituency's Labour MP, Karen Buck. The result, announced at Marylebone town hall, revealed that 1,100 residents (68%) backed the creation of a governing entity that will be funded by a precept added to Council Tax bills.

Members of a group of locals who waged a two-year campaign for London's first parish council since 1963 – the bodies were abolished to make way for the Greater London Council – say they want the authority to run community events, look after an allotment, produce a newsletter, support vulnerable locals and engage with other service providers including Westminster council. The first councillors will be elected in May 2014 on the same date as other local elections. Most residents in the area, bordered by Kilburn Lane in the north and Harrow Road in the south, live in social housing. There are high levels of unemployment and significant deprivation.

Angela Singhate, who chaired the yes campaign, said: "The group has been confident all along that a community council is the way forward for Queen's Park and this result demonstrates that we have the backing of the wider community." Buck said: "Something very exciting is happening in Queen's Park. I am incredibly proud of the community and of those who have thrown themselves with such enthusiasm into preparing for community self-government. "I am looking forward to working with them for a safer, healthier and happier Queen's Park."

Philippa Roe, the leader of Westminster council, has said the council held the referendum because it saw opportunities created through "greater civic involvement and participation". Her deputy leader, Robert Davis, said the referendum result amounted to "a fitting endorsement of the government's ambitions for localism and neighbourhood engagement".

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FRAUD AND ERRORS WORTH MORE THAN £20M IN PUBLIC SECTOR

FIRST PUBLISHED BY: BBC

OCCUPATIONAL PENSIONS WERE PAID TO 179 DEAD PEOPLE

More than £20m in fraud and incorrect benefits and pensions payments have been identified in the public sector. Identified losses included 179 occupational pensions being paid to dead people and 405 incorrect benefits payments to public sector staff. The National Fraud Initiative collected information from 74 public bodies including councils, health boards and the Scottish Public Pensions Agency.

This is the third such initiative totalling about £58m in savings. Public spending watchdog Audit Scotland said £21.1m was saved by recovering cash which had been paid out as a result of fraud, overpayment or errors. Savings were also made by preventing money from being wrongly paid out. 

The report warned that although it had been successful in identifying considerable fraud and mistakes, most data was collected before the start of the recession. An economic downturn is commonly linked to a heightened risk of fraud and public bodies have been advised to remain vigilant.

Auditor General for Scotland Robert Black said: "Most people are honest and behave with integrity. Some do make genuine mistakes, but there is a small number who set out to cheat the public sector. "The National Fraud Initiative helps public bodies save and recover money by identifying cases where payments such as pensions and housing benefits are being wrongly paid to people, either through human error or incorrect information.

"It also helps them detect deliberate fraud."

Two wages

In one case, a council employee who had moved to another council was not taken off the payroll by the previous employer and ended up being paid by both local authorities for almost two years. The council was not informed of the error and the worker was incorrectly paid about £98,000. The local authority is trying to recover the money and a report has been sent to the procurator fiscal.

Councils have also stopped or reduced housing benefit payments to 1,447 public sector workers and pensioners. In 4,322 cases the single person's Council Tax discount was withdrawn for being invalid. And 4,340 blue badges for disabled people were cancelled because the holder was dead.

New powers

The auditors said 220 cases had resulted in sanctions being applied, such as 89 cases in which suspected frauds had been reported to the procurator fiscal. A total of 18 workers have either been dismissed or have resigned from their job. Audit Scotland will carry out its next anti-fraud exercise in October, by which time it is expected new powers will allow more collaboration between other UK agencies to detect cross-border fraud. The range of public sector bodies involved could also be extended and the next exercise could also detect crimes other than fraud.

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THE YEAR TO COME

FIRST PUBLISHED BY: THE GUARDIAN 

PUBLIC AND VOLUNTARY SECTORS - PREDICTS A CASH-STRAPPED YEAR

The year to come is likely to bring a squeeze on public-sector budgets - and see the beginning of a sea change in the way services are delivered. Legislation going though parliament throws the door open for the third sector - especially charities and social enterprises - to provide and commission services across the board in future. At the same time the comprehensive spending review - the government's 10-year spending plan for the public sector, due in summer - is expected to bring an end to recent years of financial growth, putting greater pressure on overstretched budgets.

Lack of money to push through government reforms has already led to one primary care trust attempting to recruit board members with a background in the charitable sector, so it can tap into their expertise of delivering services within limited resources. This is a move which other trusts are predicted to follow - and an illustration of the new partnerships between the public and third sectors which are likely to dominate the next 12 months.

Winter

In January the Department of Health is launching a survey of 5 million patients to discover how soon they can make a GP appointment. The results, due to be published in May, will determine which practices will have a share of a £72m bonus for best patient access payable in July. At the same time the Department of Health is publishing the Commissioning Framework for Health and Well-Being, which takes forward proposals in the Care Outside of Hospital white paper. It will include details about the creation of new community foundation trusts, which will mirror hospital foundation trusts - and also explain how the third sector, including social enterprises, can deliver health services.

Howard Catton, the head of policy at the Royal College of Nursing, says: "The whole issue of acute services and closer to home care will be big through this year. The focus of primary care trusts will be on commissioning; they aren't being told to give up their provider role, but I think they will look at the new community foundation trusts to keep up a provider function." In February, the Department of Health is due to complete its consultation on the future of regulatory services for health and social care. The results will help shape what happens after the healthcare commission and the commission for social care inspection (CSCI).

The new Association of Directors of Children's Services, following the abolition of the Association of Directors of Social Services, launches in February. Its sister organisation, the Association of Directors of Adult Social Services, follows in March. Health secretary Patricia Hewitt has promised to resign in March if the NHS is still in deficit. Jonathan Fielden, the chairman of the British Medical Association's consultants' committee, says: "The biggest issue for trusts this year will be the desire for financial balance. Finance has become the number one priority for most, if not all trusts in England - which means quality [of services] is being put second."

In February, the next wave of foundation trusts is due to be announced.

Spring

By March, 90% of consultant referrals by GPs should be made through the electronic booking system, Choose and Book, and practice-based commissioning is due to be rolled out nationally. The controversial mental health bill continues its parliamentary process in the spring after reaching committee stage at the end of the year.

The Association of Chief Executives of Voluntary Organisations (Acevo) will begin the year helping charities discover how they can influence the commissioning process and negotiate good contracts. It follows publication of the office of the third sector document, Partnership in Public Services: Action Plan for the Third Sector Involvement, which recommends a three-year funding cycle for charities delivering public services and longer-term contracts.

The new compact commissioner, whose responsibilities include assessing whether charities are paid a fair price for the work they are commissioned to provide, is expected to start to have an impact from now. David Hunter, Acevo's policy and communications officer, says: "He will have a large impact throughout the year, because he will make sure that there is long-term funding and [a] fair share of overheads. If we are to see the third sector transforming public services then we have got to make sure that the resources are being made properly."

The offender management bill, which opens the commissioning of probation services to the voluntary and private sectors, is due to reach its crucial report stage in February. The assistant general secretary of the National Association of Probation Officers, Harry Fletcher, warns: "If the bill is passed it will be a disaster because local accountability will be eroded. Tendering for services will be done on a regional or national level, so small voluntary organisations who already work with offenders in the community will to go to the wall because they will not be able to compete." The chancellor's budget is due in March. It is expected to be his last - but will he ditch prudence?

The delayed report of the Lyons review on the future of local government finance, including the fate of Council Tax, is due to report around the same time as the budget. Lord Sandy Bruce Lockhart, chairman of the Local Government Association (LGA), says: "Local government has some real opportunities within the year and the chance to seize a once-in-a-generation moment to ensure that local people have a greater say in how key services can be delivered for them at the right time in the right place at the right cost. It will also confront some daunting challenges, not least rising demand, increasing legislative costs and tighter financial restraint."

Summer

The chancellor is due in the summer to announce details of the comprehensive spending review - the 10-year spending plan for public services. It is expected to be "revenue neutral", offering only inflation-level increases in spending. The LGA is worried that it could trigger cuts in council spending as boroughs face paying the lion's share for care of the elderly services which are joint-funded with the NHS. By April all patients needing a diagnostic test should be seen within 13 weeks. The inspection of children's services is being taken away from CSCI in April and transferred to the new Ofsted, the Office for Standards in Education, Children's Services and Skills - which will also inspect the Children and Family Court Advisory and Support Service (Cafcass). The controversial welfare reform bill, which changes the incapacity and housing benefit systems, is expected to gain royal assent in May. 

Autumn and winter

The Charity Commission is due to start consulting on the definition of the public benefit clause of the Charities Act, and expects to publish guidance in September. The clause requires that all charities must exist for the public benefit. The local government and public involvement in health bill, which aims to reduce the amount of top-down control from Whitehall, is expected to become law by November.

By the end of the year, the number of established children's centres should be increased - as well as an expansion of the government's extended-schools programme. The president of the Association of Directors of Social Services, John Coughlan, says: "I think we will be in the position of transforming the reforms in children's services into action. I think we will see tangible evidence of delivering integrated children's services."

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COUNCIL MERGERS ARE A ONE-WAY DOOR

First published by: The Guardian

TRADE UNIONS WARN LOCAL AUTHORITIES NOT TO BREAK TRUST PUT IN THEM BY COMMUNITIES

Labour councillors in Westminster, Kensington & Chelsea and Hammersmith & Fulham are all in favour of any genuine efficiencies. But we believe major long-term changes should not be driven by one party's political agenda. The planned merger would result in services being provided to a population equivalent to the size of Glasgow. Large councils are not necessarily more efficient – there have been many high profile failures when councils have merged services before. 

We believe that there must be cross-party involvement and wide public support for these proposals before they are carried out. Sadly, the Conservatives in all three boroughs have been highly secretive. Indeed, they would not allow their officials to consult any opposition councillors in the three local authorities prior to the announcement and have failed to provide any detailed information since. We also have the following concerns:

The Conservatives are not ruling out using this merger as a mechanism for even more front-line service cuts, stealth taxes and loss of jobs, or as an excuse to undermine local democracy or sell off more community buildings. Nor have they explained how local residents will keep their ability to hold their council to account. They have not explained how any newly elected administration would be able to secede from any part of this if political control changes. They have also failed to explain why these particular local authorities should merge services. 

Already, there appear to be different messages coming from the three Conservative authorities. This confusion does not bode well for the project's success. We call on the Conservatives to take a more open, inclusive and transparent approach to the plans. Cllr Judith Blakeman, Leader of the opposition, Royal borough of Kensington and Chelsea, Cllr Stephen Cowan Leader of the opposition, London borough of Hammersmith and Fulham, Cllr Paul Dimoldenberg Leader of the opposition, City of Westminster 

• As the first chief executive to take responsibility for managing two local authorities, I am writing to express disappointment at your coverage of the proposed arrangement between three London boroughs. The London-centric vision gave little credit to the dozen or more such partnerships that now exist. These have delivered millions of pounds of savings and service improvements and found many lessons for others contemplating this path.

The key to success is the nature of the arrangements that control the joint business. If constructed well, to give the politicians of each partner a real say, this can allow local standards of services to exist alongside the efficiency of a single officer structure and shared services. The thorny issue of what happens if the politics change is answered by the simple truth that once an arrangement is in place, any change requested by any of the partners would need to justify the cost and disruption of creating a parallel structure. In the current climate, local taxpayers are hardly likely to be positive about this. In our Adur/Worthing partnership we have always recognised that each new joint arrangement is probably a one-way door.

Ian Lowrie

Chief executive, Adur district council/Worthing borough council   

 • There have been many times during my years as a headteacher that I have been left bewildered by government policy; however this week's announcement truly surpassed all others. Every school-age child in the country has benefited hugely from their local School Sports Partnership in creating collaborative working between schools, community coaches and specialist providers based on the Olympic values. 

They have increased engagement with sport for pupils and staff and provided a wealth of opportunities. In my own school, involvement in the School Sports Partnership has had a direct impact on raising standards annually, has enabled us to develop an increasingly creative curriculum and to ensure that all pupils, parents and staff appreciate the value of committing to a healthier lifestyle as well as instilling the values of excellence, inspiration, courage, determination, respect, friendship and equality.

However, the coalition government will cease all direct funding for PE and school sport from 31 August 2011, less than one year before the Olympics. The legacy that these games should have will now be in doubt as the funding ends and the systems that have become very well established are left to fragment. 

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COUNCIL TAX REVALUATION 'WOULD HIT POOREST THE HARDEST'

First published by: The Guardian

COMMUNITIES SECRETARY, ERIC PICKLES, DEFENDS GOVERNMENT DECISION NOT TO REVALUE COUNCIL TAX BANDS

Eric Pickles said based on a revaluation in Wales, 7m households would be worse off from a similar exercise in England. The government today defended its decision not to revalue Council Tax bands during the current parliament, claiming the exercise would hit the poorest the hardest. The communities secretary, Eric Pickles, announced the move last night, saying families would be up to £320 better off than if a planned revaluation by Labour had taken place. 

Labour said the announcement was "cynical and misleading" as the party had pledged in its election manifesto that it would not have held a Council Tax revaluation in the next parliament. Today Pickles acknowledged that current Council Tax bands were based on dated information, but said there was no need to conduct a revaluation because the current system was fair. In an interview on BBC Radio 4's Today programme, Pickles said that, based on an unpopular revaluation in Wales, 7m households would be worse off from a similar exercise in England. "Let's go back to Wales. 

The people who were hit the hardest were those on the lowest bands, A to C. Something like two-thirds of the increases occurred in those bands in Wales. This would actually hit poorer people harder than it would hit richer people." He said a planned revaluation by the Labour government would have meant the average Band D tax bill would rise by £1,600 a year. "What we want to do is offer some degree of stability. Just coming out a recession I don't really think we should be imposing an extra £1,600 worth of taxation on them," he told Today. Plans for a revaluation of 22m homes in 2007 were postponed by the Labour government in 2005, after the Welsh revaluation prompted anger over Council Tax rises.

Pickles also denied the government was being centrist by denying councils the scope to revalue bands in their areas. "They can raise their Council Tax. We are going to remove capping and allow local people to decide the level of their Council Tax by way of a referendum. So we are taking power away from the centre and giving it to local people," he said. He insisted the current system was fair. "It is the relationship between the top and the bottom bands that's important and the relationship between the north of England and the south of England. They are roughly in the same position that they were 20 years ago. So there is actually no need for a revaluation."

Pickles also announced an independent review of Council Tax inspections, which he said would "rein in intrusive snooping" by restricting the data gathered and stored about people's homes. Inspectors from the Valuation Office Agency (VOA) assess the value of properties for Council Tax purposes, and there has been controversy over their collection of data on features of homes such as the number of bedrooms or bathrooms, whether it has a patio and whether it enjoys a nice view or is in a good neighbourhood. An independent data audit of the VOA would protect privacy and civil liberties as part of the government's agenda of dismantling the "database state", Pickles said.

"We have cancelled Labour's plans for a Council Tax revaluation which would have hiked up taxes on people's homes," he said. "The new government will protect the privacy of law-abiding citizens from intrusive spies-in-the-sky and halt state inspectors from barging into England's bedrooms and gardens. "We are standing up for the people who have pride in their home, and calling time on Labour's state snoopers and surveillance state. "Hefty Council Tax bills are a constant financial worry for many people. Today we are setting their minds at ease, and protecting the interests of the less well-off in particular who were the hardest hit from Labour's Council Tax revaluation in Wales."

A Labour spokesman said the party "made an unequivocal commitment that there would be no Council Tax revaluation in this parliament". "This is a cynical and misleading manipulation of facts," he said. A spokeswoman for the VOA said it was "absolutely not the case" that its inspectors' work amounted to snooping on householders. She said the agency has never exercised its legal right to enter a home since it was introduced by legislation in the early 1990s.

Consumer expert Martin Lewis, of moneysavingexpert.com, said the failure to hold a revaluation would mean 400,000 homes remaining in the wrong Council Tax bands.

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FAMILY FINANCES ARE SQUEEZED – WHAT CAN YOU DO TO EASE THE PAIN?

First published by: The Guardian

LOOK AT HOW TO BRIDGE THE INCOME GAP

With everything from the cost of driving, food and bills rising families are struggling. Spring will bring a chill for most of us - a combination of at least 45 tax and benefit changes will ransack household budgets already depleted by soaring food and fuel prices, and predicted interest rate rises will tip many mortgage holders into the red.

On average, households are already £480 a year worse off following tax changes introduced in January, according to the Institute for Fiscal Studies. April's reforms, including increases to fuel duty and national insurance contributions, will add an extra £200 burden. 

The problem of making ends meet is particularly acute for families. Last year households with dependent children needed an additional £650 a month just to cover everyday living costs compared to those without, according to the Consumer Credit Counselling Service (CCCS).

Families with more than three children are, on average, £45 short of the money they need to live each month. No wonder, then, that 28% of Britons are spending more than they earn each month, according to Cooperative Insurance and homeless charity Shelter. Joanna Parsley, associate director of charity Credit Action, said: "Even people who have had a marginal increase in their salaries will find it is cancelled out by rising living costs. Those with no children or on lower incomes might be better off because of an increase in the personal allowance, but for most of us there really is no way to avoid the squeeze. It is vital that everyone looks to revisit their finances and get them in order."

Homeowners are likely to be more precarious than renters, the CCCS said. On average, clients who own their own home have more than £30,000 in unsecured debts on top of their mortgages. And although interest rates on credit cards and personal loans don't usually move in line with bank base rate, a 2% rise would lead to a £307 increase in monthly mortgage payments. "It is the lull before the storm," said CCCS spokeswoman Una Farrell last week. "Mortgage holders have managed quite well because interest rates have been so low, but we are expecting a big influx of new clients as rates rise."

No section of society is safe. CCCS chairman Lord Stevenson said: "It seems likely that many more families, including better-off ones, will be increasingly prone to over-indebtedness in the months ahead. "It is also not a uniform picture: public sector cuts in terms of jobs, spending and benefits will weigh disproportionately on certain groups, and the incidence of unmanageable debt bears down harder on specific parts of the country, such as London and Yorkshire."

It is easy to blame inflation and tax rises, but are we also to blame for expecting too high a standard of living? Apparently not, if research by First Direct is anything to go by. It found that young people would have to increase their income by 55% to enjoy the lifestyle their parents had at the same age. The figures show that someone in their mid-twenties would have to earn £39,720 to buy a house, fund a wedding and afford a first child; the average salary for 20-somethings is nearer £25,000.

In November the Office of National Statistics released its latest data on the cost of UK lifestyles, which showed that in 2009 the average household spent £16 a week less than the previous year - the first time expenditure has fallen since current recording methods were introduced in 2001. "In statistical terms that's quite a robust change," said ONS statistician Giles Horsfield. "We noticed that a greater proportion of the weekly spend went on food, and less went on transport and recreation."

Figures for 2010 won't be released until the end of the year, but transport and food will almost certainly swallow even bigger slices of the weekly budget thanks to an increase of about 18 % in fuel costs over the past year, according to PetrolPrices.com, and a 4.2 % increase in groceries, according to shopping website mySupermarket.

The average disposable household income in the UK of £28,354 is clearly not enough to meet a household's daily outgoings. So, the Observer decided to look at typical and - in most cases -essential household costs to work out exactly why we are so broke, whether the situation is likely to get better or worse - and what you can do about the income gap.

Motoring

The expense of running a new car rose to £5,869 last year, with fuel (£1,300) and depreciation (£3,072) the most significant costs, according to the RAC. Owners of used cars faced an average cost of £4,441 in 2010, including £1,396 in fuel and £1,040 in depreciation. With the average cost of a litre of standard unleaded now costing 133.34p and a litre of diesel hitting 139.71p, according to PetrolPrices.com, it will come as no surprise that the cost of running a car is expected to soar this year.

Fuel duty is set to rise by inflation plus 1p on 1 April (the ninth tax increase since December 2008), adding between 3p-4p a litre at the pump and around £50 to the average annual bill. To combat rising fuel costs, drivers should make sure tyres are well inflated and should drive sensibly, get their car serviced regularly to maintain engine efficiency, avoid unnecessary use of air conditioning, and get rid of roof racks to improve aerodynamics. Also consider lift-sharing, try to find the cheapest local petrol - PetrolPrices.com is a useful source - and take advantage of discounts and supermarket deals.

To reduce insurance costs you should shop around for the best deal; consider buying a smaller car; pay your premium up front; park in a driveway or garage; consider a third party fire and theft policy if your car is low-value; and don't overestimate your mileage. Young female drivers, who are expected to be hit by soaring premiums following the recent European ruling banning the use of gender in underwriting, may benefit from the introduction of "black box" based policies which are based on the safety of a policyholder's driving habits.

Mortgages

Thanks to the Bank of England base rate staying at 0.5% for the past two years, monthly mortgage payments have dropped to their lowest levels in 10 years. The average mortgage borrower, according to the Council of Mortgage Lenders, owes £109,110 at an interest rate of 3.5%. The vast majority of mortgages are set up on a repayment basis, and the monthly premium for a loan this size would be £546.23. However, most experts expect the base rate to rise very soon, which will increase the cost of all variable rate deals. Each 0.25% rise in base rate will add £15 to a £109,110 repayment loan, according to moneysupermarket.com.

David Hollingworth of mortgage broker London & Country says most people will opt for a fixed rate to protect themselves against rises. Nationwide building society has a five-year fix at 4.39% with a 70% loan-to-value (LTV) ratio and £999 application fee, while Norwich & Peterborough building society has a five-year fix at 5.38% with an 85% LTV and £995 fee. However, those who are more confident that their finances can absorb some extra costs may prefer to take the risk that the base rate will rise slowly, opting instead for a tracker mortgage. HSBC's lifetime tracker is set at 1.79% above base and has an LTV of 60% and fee of £99.

Food

The FAO Food Price Index rose for the eighth month running in February, up 2.2% from January and at the highest level since January 1990 when the index began. In the UK, certain foods climbed in price at the beginning of the year as VAT rose from 17.5% to 20%, but other items - tea, ground coffee, butter, pasta, fruit juice, bread and vegetables - have shot up still further, according to mySupermarket.co.uk.

Dalia Mays, a spokeswoman for the site, says there to reduce the cost of the weekly shop. Try swapping your regular supermarket for a cheaper one: buy your staples at Asda rather than Sainsbury's or Waitrose. Try setting a budget and shopping online: it means you can buy everything you normally would but you won't be tempted by off-list extras. She adds: "Everyone has the brands they will never swap, such as Diet Coke or Heinz ketchup. But for things you're not too bothered about, try the supermarket own brand, or better still the supermarket value range."

Mysupermarket calculates the VAT increase will cost food shoppers an extra £66 in 2011 compared to 2010. But you can avoid VAT altogether by making crafty substitutions: buy tortilla chips instead of crisps, cream gateaux instead of arctic roll and chocolate chip biscuits instead of chocolate covered ones, unshelled salted nuts instead of shelled ones.

Utilities

Although households benefited from price cuts in 2009, the proportion of the household budget spent on energy rose substantially in 2010 thanks to freezing weather at the beginning and end of the year, and prices have risen by an average of 6.5% over the past 12 months. The average annual dual fuel bill was £819 in January 2008, but now stands at £1,132, according to uSwitch.com. Spokeswoman Ann Robinson said that if Ofgem considers current profits being made by energy companies as reasonable, and oil prices remain high, there is "a reasonable chance energy prices will go up later this year".

Consumers should check whether they can save money on bills and cut the amount of energy they use. Consider fitting an energy efficiency device to help reduce use, and turn things off when they are not in use. Insulating a home or installing an energy efficient boiler can produce longer-term savings.

Paying by direct debit each month will help reduce bills (suppliers offer discounts for paying this way) and consumers should make sure take regular meter readings as estimated bills can be disporportionately higher. Anyone who is concerned about paying their energy bills should contact their supplier to discuss the options.

Council Tax

The average band D household is expected to pay £1,438.87 for Council Tax in 2011, down 35p on last year, according to the Chartered Institute of Public Finance and Accountancy. The government has stumped up £650m to local authorities to allow them to freeze bills this year, although some are still imposing increases.

There's not much you can do to reduce the size of your Council Tax bill. But if you are the only adult in the household, you may qualify for a 25% discount. Other adults may be "disregarded", including full-time students, student nurses, young people on government training schemes or those following apprenticeships, and live in care workers. If everyone who lives in the property is disregarded there will still be a Council Tax bill, but it will be discounted by 50%. Check whether your household qualifies on the Citizens Advice website.

Credit cards

The most vulnerable to debt are those with children because they have less flexibility to reduce their expenditure, which means they are more likely to take out credit to meet living costs. If you want to reduce the interest you pay help may be at hand with MBNA's recent introduction of an 18-month 0% balance transfer card. This sparked a card price war with Virgin Money entering the fray with a deal to match the MBNA card. Barclays then stretched its own 0% interest period on balance transfers from 18 months to 20 months.

While the credit-scoring might be tougher on new cards, switching your debt to a card incurring no interest is a sensible move. Decent deals are also on offer from M&S (0% for 15 months) and Nationwide (0% for 17 months) - but make sure you compare the balance transfer fees and check the length of the offer for new purchases made on the card - the reversion interest rate is always markedly higher

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COUNCIL TAX REBATE REFORMS RISK REPEAT OF POLL TAX DISASTER.

First Published By: The Guardian 

REPORT SAYS REFORMS WILL HIT LOWEST INCOME HOUSEHOLDS HARDEST AND RISK 'SEVERELY UNDERMINING' UNIVERSAL CREDIT SCHEME

The 1990 poll tax riots in London: the IFS says 'the perceived unfairness of the poll tax was associated with non-compliance on a scale rarely seen in the UK'. Plans to give local authorities control over Council Tax rebate at the same time as cutting funding by a tenth could result in the poor driven out by boroughs seeking to save money – and raises the prospect of a replay of the poll tax debacle, a report claims.

A damning assessment by the Institute for Fiscal Studies of the proposed Council Tax benefit changes, which start next April, says that although the reform's £480m a-year savings equate to an average £19 per household, the working poor would be hit hardest. The government proposes to allow councils to design a local benefit system but in return says it will cut funding for it by 10%. With 5.9 million recipients, it is more widely claimed than any other means-tested benefit or tax credit.

The cut in funding will be larger, says the think-tank, in areas where Council Tax benefit spending is highest – the more deprived areas of Britain. It estimates the cut in funding will range from around £5 per dwelling in the wealthy City of London to £38 per household in Haringey, the fourth most deprived borough in the capital. The report also notes that the requirement to protect pensioners in England means that the cut in funding of a tenth translates into a 19% cut in support for working-age claimants. Those local authorities where pensioners account for an above-average share of Council Tax benefit spending would need to make larger percentage cuts to support for working-age recipients. For one in 10 English local authorities it would be more than 25%, with the highest value being 33% in East Dorset and in Craven, North Yorkshire.

The IFS also says cuts to Council Tax support are bound to hit lower-income households, as 85% of the benefit goes to the lower-income half of households and almost half goes just to the lowest-income fifth. The report's authors warns that to limit their spending councils will have "an incentive to discourage low-income families from living in the area" and that raises the possibility that councils will – like the ill-fated poll tax of the early 1990s – be left to chase desperately poor people through the courts for small amounts of unpaid tax. The poll tax led to riots and played a part in the downfall of Margaret Thatcher. Recalling these events, the IFS says in 1990 "the perceived unfairness of the tax was associated with non-compliance on a scale rarely seen in the UK".

However, the new scheme replicates some of the worst aspects of the poll tax. "These policies mean that all households, even those on the lowest incomes, would have to pay some Council Tax. The poll tax experience showed how difficult it can be to collect small amounts of tax from low-income households that are not used to paying it," they say, noting that the poll tax was "quickly replaced". The proposed scheme also risks "severely undermining" the government's flagship universal credit scheme, which will replace six of the seven main means-tested benefits and tax credits for those of working age with a single benefit. However, the seventh means-tested benefit will be "localised".

James Browne, a senior research economist at the IFS and one of the authors of the report, said: "Cutting support for Council Tax and localising it are two distinct policy choices: either could have been done without the other. Whether you think that cutting Council Tax support for low-income families is the best way to reduce government borrowing by £500m will depend on your views about how much redistribution the state ought to do.

"But the advantages of localisation seem to be outweighed by the disadvantages, particularly as it has the potential to undermine many of the positive impacts of universal credit." The local government minister, Bob Neill, said: "Labour fostered a culture of welfare dependency with Council Tax benefit more than doubling on their watch. "People who have worked hard all their lives and paid taxes need to know the spiralling benefits bill is being controlled and that work pays. "It is right that local authorities, who collect Council Tax, have a strong incentive to put in place a fairer local Council Tax support scheme that helps their residents get back into employment based on local priorities.

"I find it astonishing that the IFS are following the Labour party's lead and recommending the abolition of the single person's discount. "We shouldn't be punishing single mums and pensioners who have worked hard all their lives and paid their taxes simply because they live on their own. There is a gross sense of injustice at raising taxes that could force people out of their homes."

Labour said that the universal credit programme risked descending into chaos. Stephen Timms, the shadow work and pensions minister, said: "We've been warning for the last 18 months that universal credit was so badly thought through that chaos would ensue. Now, the IFS has revealed that the new benefit will be torpedoed by changes to Council Tax benefit. One part of government doesn't seem to know what the other part is doing.

"It looks like two parts of government are simply at war with each other; and it's poor old ratepayers who could pick up the tab, with higher bills or worse services. Thousands could find themselves suddenly better off on benefits than in work. "With the work programme sinking, the benefits bill spiralling up by £9bn and huge questions over universal credit, the government's welfare reforms are looking more chaotic by the minute."

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

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