Plans to reduce council tax relief for low-income families in expensive properties are being considered by MPs.

The move will affect 65,000 households in tax band E homes worth at least £120,000.

Critics say pensioners and the disabled will be particularly hard-hit by the proposal as will those in south-east England and London where property values are higher.

Currently people on income support pay no council tax but from April 1998 low income households in properties worth more than £120,000 will face an average bill of £4 a week.

The Government believes it is reasonable for people in expensive homes to contribute to local services.

CAB's Liz Phelps: Concerned poor will be hit by new plan

But Liz Phelps, of the Citizens Advice Bureaux, said: "You don't have to be rich to be living in properties above band E in London and the south-east.

"Government figures show that 10,000 of the people affected will be council or housing association tenants. These people are not rich by any stretch of the imagination."

Some finance experts predict poor people will be chased through the courts for money they do not have - a problem associated with the poll tax which the council tax replaced.

Stuart Reid, of the Valuations Institute, said: "If these people are unable to pay the tax then local authorities will have to send reminders and summonses.

"If the worst come to the worst, the councils will be sending in bailiffs and applying for these people to be sent to prison."

Back to top | BBC News Home | BBC Homepage	©