Council Tax Rises 'To Hit Pensioners'

by Michael Ross
Posted by Hannah on 27 March 2009
Council Tax Rises 'To Hit Pensioners'

The government has announced its lowest average council tax increases in 15 years, however Age Concern has said this may still place a strain on pensioners' finances.

Britain's pensioners are set to be worst hit by planned increases to council tax rates, the charity Age Concern has warned.

Earlier this week, local government minister John Healey announced that the average council tax rise to be introduced by local authorities will be the lowest on record, with the typical Band D property likely to see their bills rise by just three percent.

However, according to campaigners, even such a small rise will hit millions of pensioners hard, largely as council tax is based on the size of a property rather than a household's income meaning it often hits those people who are "asset rich, but cash poor".

Anna Pearson, policy manager for Help the Aged, said: "Any rise in council tax, regardless of the percentage, is going to be difficult for pensioners on low, fixed incomes.

"This is yet another essential cost that will put a strain on people's finances."

At the same time, Age Concern and Help the Aged reported that pensioners miss out on a collective £1.4 billion worth of council tax benefit each year, with just 45 percent of older people currently taking advantage of a scheme that would likely save them around £580 a year in bills.

Alongside modest increases, some 23 councils across England and Wales have so far announced plans to freeze council tax for the forthcoming year.

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