Thousands of state pensioners across the UK are facing a severe financial warning as the Labour government considers a dramatic council tax increase on higher-value homes.
What is the Proposed Council Tax Change?
Chancellor Rachel Reeves is reportedly evaluating proposals to double the levy on properties in the top two council tax bands. This potential change, emerging from Treasury plans, could see bills for the most expensive properties surge to over £9,000 per year.
Under the proposed shake-up, households in Band G would see their typical annual council tax jump from approximately £3,800 to £7,800. Those in the highest Band H would be hit even harder, with average bills leaping from £4,580 to a staggering £9,120.
Political and Public Backlash
The plans have sparked immediate criticism from political opponents and concern from the public. Kemi Badenoch, leader of the Conservative Party, issued a stark warning about the impact on long-term residents.
"Creating new higher council tax bands will hammer people who have lived in the same house for decades, particularly pensioners," Badenoch stated. "Some... will be unable to pay this new tax and be forced out of their home."
Nigel Farage of Reform UK echoed these concerns, labelling the potential move "an assault on assets" that would cause "huge consternation amongst older people living in properties they bought many years ago."
Pensioners Speak Out Against 'Significant' Bills
The proposed changes have resonated deeply with pensioner groups. David Papworth has launched a petition arguing that the current council tax system is fundamentally unfair to those on reduced retirement incomes.
"I feel that current council tax rates do not take pension incomes into account," Papworth said. "This means some pensioners are having to pay what I think is a very significant percentage of their pension towards council tax."
He emphasised the injustice for those who have worked for decades, paid into a pension, and bought their own home, only to face substantial tax bills on a lower retirement income.
In response to these concerns, a government spokesperson stated: "The Government requires councils to provide council tax support so the lowest-income pensioners do not pay council tax. There are no plans for a mandatory council tax discount for all pensioners."
