A new report from the charity Independent Age reveals that state pensioners across England are missing out on up to £1.71 billion in council tax relief. The report, titled 'Missing out on millions', urges the Labour Party government to automatically grant a council tax discount to every eligible person above state pension age.
Potential Impact of the Rule Change
If implemented, the change could lift approximately 74,000 older households out of poverty across the country. Poor publicity has been blamed for the failure of £1.71 billion in support reaching those who need it most. Analysis by Independent Age shows that only 50% of eligible pensioners are currently receiving a Council Tax reduction (CTR).
Charity Calls for Action
Joanna Elson, chief executive of Independent Age, said: 'Older people on low incomes are having their budgets stretched to breaking point, and rising council tax is pushing far too many pensioners deeper into financial hardship. Our research shows that lack of CTR take-up is keeping a shocking 74,000 older households in poverty. It’s not right that people in later life are cutting back on essentials such as food and heating so they can cover their council tax bill when this help is available to them.'
She added: 'Both the Government and local authorities have a role to play in ensuring CTR is well publicised and reaching those that need support. If the Government is serious about raising living standards, it must increase the level of support it provides to local authorities for delivering CTR and help lift tens of thousands of older people out of poverty.'
How Council Tax Reduction Works
Council Tax reduction can reduce an average bill from £2,392 to £0, providing a low-income household with a saving of £46 per week. One 66-year-old CTR recipient from Birmingham shared: 'If I hadn’t applied I’d be paying more than £900 a year in council tax. The money I’m saving means that I don’t have to be cold in winter and I can turn my heating on. I don’t have to worry so much if a bill that is higher than expected comes or if I have any unforeseen expenses. And I can afford to buy myself fresh and healthy food.'
