Council tax 'unfair to older people'

Malcolm Bennett: pays £1,600 a year

Increases in council tax are leaving older people badly out of pocket, say two charities.

Help the Aged and the Royal British Legion say the tax has nearly doubled in the past 10 years, while most pensions have gone up by only a quarter.

The charities want reforms in council tax to combat this and also changes in council tax benefit, to encourage more people to claim it.

Council tax bills have risen sharply this year, with increases averaging nearly 13% among English councils.

Heavier burden

In some areas, however, they have gone up by more than 40%.

A report commissioned by Help the Aged says that households spent an average of 3% of their income on council tax.

But the burden on pensioners is much heavier, with single pensioners over 75 spending an average of 6%.

At the rate it's increasing there will come a time when I can't afford to pay it. Malcolm Bennett

That's the problem facing Malcolm Bennett from Kent. He's in his 50s and was made redundant, so is living off his company pension. But his council tax is £1,600 a year.

"Being on a fixed income for me has meant I really have to examine all my outgoings," he says.

"But when it comes to council tax, I have to pay it.

"The cost to me is something like 15% of my income and at the rate it's increasing there will come a time when I can't afford to pay it.

Penalise

"My council tax has increased by 12.2% this year - my pension has increased by 2.9%."

The council tax benefit only kicks in if savings are below £16,000.

"I thought the whole point was to encourage saving and not to penalise those that have saved for their retirement," says Malcolm.

Help the Aged would like this problem addressed.

Richard Wilson: Problem needs addressing

"What we're calling for is council tax benefit to be brought in line with the Pension Credit, which is aimed at protecting those with moderate savings so they don't have to lose all their savings to become eligible for help from the state," says the charity's Richard Wilson.

More people would get the benefit if pensioners were given a recalculated bill which already included the benefit.

The charities' calls come in the same week as a government warning to local authorities that big tax increases were unsustainable.

It is now threatening to use capping powers against further increases.

"Organisations like ours have been inundated with calls and letters from pensioners angry over above-inflation council tax increases and fearful of the impact of future tax hikes," says Richard Wilson.