40% of council tax unpaid by low-income households

  • Campaigners believe that people on low incomes are unable to pay the charge imposed on them meaning councils are left chasing lost revenue. Money Notes 2

    Council tax has been levied on the poorest of households in England since April last year due to a series of benefit cuts, reports the Guardian.

    The figures, obtained from responses from 140 councils to Freedom of Information requests by the anti-cuts group False Economy, reveal that some of the biggest towns and cities were left chasing millions of pounds from the poor.

    A spokesperson for False Economy called for the cuts to be reversed. "These figures show that people on low incomes are struggling to cope with council tax benefit cuts, just as the government was warned they would. Households are left either falling into debt and at risk of legal action, or taking money for food and essentials to plug the shortfall, in what is a government-created personal debt crisis."

    Council's say they are caught in an "impossible situation" has ministers have forced local authorities to pass on £500m in cuts when the schemes were introduced.

    Sharon Taylor, chair of the Local Government Association's finance panel, said: "Councils would need to find £1bn by 2016 to protect discounts for those on low incomes. At a time when local government is already tackling £20bn worth of cuts, this is a stretch too far. Many councils have been put in an impossible position. No one wants to ask those on the lowest incomes to pay more. But pressure on funding for local services means many councils have had little choice but to reduce the discount."

    Hilary Benn, the shadow cabinet member responsible for local government, said two million of the poorest people were affected by the council tax hikes. "These figures show that many of the people affected, including single parents and disabled people, are finding it very difficult to pay the Tories' tax increase. The government was warned that this was going to be Poll Tax mark two, and so it is proving."

    Kris Hopkins, the local government minister, said: "Our reforms to localise council tax support now give councils stronger incentives to support local firms, cut fraud, promote local enterprise and get people into work. We are ending Labour's something-for-nothing culture and making work pay."

    What do you think of this? Tweet us your comments @suppsolutions

    Image source: http://www.freeimages.com/photo/386434

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