Friday, 3 May 2024

Council tax pushing thousands into poverty because of online applications

Thousands of Britain’s most vulnerable people are losing out on help to pay their council tax, a charity has warned.

Turn2us said many pensioners are no longer receiving help because of the council’s ongoing shift to digital-only services.

It warned the new rules are locking out those who need financial aid the most – and as a result, pushing people into poverty.

There were 1,588,000 pensioners claiming council tax support in the three months to December 2018, a drop of 245,000, or 13%, compared to the same period in 2015, Ministry of Housing, Community and Local Government figures show.

Matthew Greer, at Turn2Us, said the fact that so many are now not receiving the correct support for council tax is unfair.

"We speak to thousands of people each week through our helpline, many of whom are pensioners, struggling to navigate a complex and increasingly ‘digital-first’ welfare system" he said.

"People who are already struggling to get by end up being sucked further into poverty."

The Government said it has protected pensioners following a change to the benefit, and that they continue to receive the same level of support as under the previous system.

However, out of 326 local authorities, only five have not seen a fall in pensioner claimants since 2015.

What discounts are available?

Low-income households in England can apply for a discount of up to 100% on their bill under the Council Tax Reduction Scheme.

The scheme replaced the nationally-administered Council Tax Benefit in 2013, giving individual local authorities the power to decide who is eligible for support and what discounts to offer.

Some pensioners who receive pension credit to top up their income may be fully exempt from council tax.

Others may get a discount if they have less than £16,000 in savings or property, but the amount will vary depending on their income.

Caroline Abrahams, from Age UK, said it is important for eligible pensioners to have access to support.

"It is shameful that despite millions of older people struggling financially, at least £3 billion in social security benefits remains unclaimed every year when this extra income could make a huge difference to their lives," she said.

In addition, fewer working-age people are also claiming council tax support, although their numbers have fallen less sharply than in the case of pensioners.

Between October and December, around 2.3 million working-age people claimed a discount on their tax, down from 2.5 million in 2015 – a drop of 8%.

The Local Government Association said budget cuts have meant many councils have been forced to reduce the support they give to residents.

Richard Watts, chairman of the LGA resource’s board, said: "Between 2010 and 2020, councils will have lost almost 60p out of every £1 the Government had provided for services.

"No one wants to ask those on the lowest incomes to pay more but this has put councils in an impossible position."

Local government minister Rishi Sunak said councils were best placed to make decisions about the appropriate level of support to provide in their area.

He added: "Pensioners continue to receive the same level of support as under the previous Council Tax Benefit system, and we have given councils access to £46.4 billion this year to allow them to meet the needs of their residents."

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