News

Help the Aged has delivered thousands of postcards to Chancellor Gordon Brown demanding that he re-instate the £200 Council Tax rebate for pensioners in his Budget speech on Wednesday.
 
Anna Pearson, senior policy officer at Help the Aged, comments: 'Wednesday's Budget speech gives Gordon Brown the perfect opportunity to show he is serious about pensioner poverty. Thousands of older people have signed up to our campaign calling on him to do the right thing. If he fails to reinstate the rebate, it shows a cynical disregard for every single older person who has taken the time to campaign with Help the Aged in the face of punitive Council Tax bills.'

What we want

• Creating poverty – Older people’s lives are at risk because they can’t make ends meet.
• Unfair on older people – Council Tax is based on property, not income, so older people on fixed incomes are hit hardest.
• Out of step with pensions – Council Tax is increasing at double the rate of pensions.
• Government handouts – A reform of the system is needed, not one-off handouts from government.
• Confusing system – Muddled information is preventing older people from receiving benefits they’re entitled to.

Creating poverty

For many of the UK's 11 million pensioners, Council Tax rises are more than an inconvenience. They can be a death sentence.

Unable to afford ever increasing bills, older people have to choose between paying their Council Tax, or paying for heating, clothes and food.

There are an estimated two million older people already living below the poverty line. High Council Tax increases threaten to plunge already poor older people even further into poverty.

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Unfair on older people

While pensioners are means-tested for the benefits they receive, Council Tax rates depend on the value of their property.

This leads to the absurd situation where an older couple living in their own home, receiving just £182.00 between them from their state pensions, could end up paying the same level of Council Tax as their neighbours, a young and wealthy couple with an income of tens of thousands.

The Council Tax system needs to be made fairer for older people - one based on people's ability to pay, not just where they live.

Out of step with pensions

Millions of older people receiving an already low state pension are hit hardest.

Since Council Tax was introduced just over a decade ago, it has more than doubled. In 2003 the average Council Tax rise was more than 12 per cent. In 2006 Council Tax has risen by at 5 per cent double the rate of inflation .

Yet the Basic State Pension, on which most older people depend, is increasing at only half the rate of the Council Tax. The cost of Council Tax combined with fuel bills and water rates will mean that the average pensioner pays out around half their state pension in bills.

Government handouts

In March 2005, a £200 age-related payment was introduced to help pensioners with Council Tax bills, but this was removed a year later. The increased payment can only be described as an election bribe: not least as it was announced just before the May 2005 election!

This year, this payment was removed even though no changes have been made to the Council Tax system. Thought only a radical reform will address the problems of Council Tax, Help the Aged is calling for this payment to be reinstated immediately.

Confusing system

Nearly half of pensioners entitled to Council Tax benefit aren’t claiming it, because of confusing information and a lack of publicity.

The very poorest can get all of their Council Tax paid, and more than half of all pensioners can get reductions. But millions are not claiming the money they are entitled to.

Over 2 million pensioners in Great Britain did not claim the Council Tax Benefit in 2003/4. They could have made savings of around £536 a year.

More needs to be done to make older people aware of the benefits they can claim, and to make Council Tax Benefit easier to obtain.

In the long term, the whole system needs to be overhauled. It is confusing and overly complex for older people to have to pay their Council Tax, then claim benefits. They should be charged less in the first place.

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What you can do

Answer our survey
Tell us your experiences of Council Tax. You can remain anonymous, but giving us your contact details might mean your story could help our campaigns.
1. What is your current level of Council Tax, per month or per year?
2. By how much has your Council Tax increased since last year, or the year before?
3. By how much has your pension increased in the last year?
4. How has rising Council Tax affected what you can afford to buy, and how has it affected your life?
5. How do you feel about Council Tax rises, and what should be done about it?
Please email your answers to our Campaigns team

Visit your MP
Members of Parliament, Assembly Members and Members of the Scottish Parliament are obliged to hold local constituency ‘surgeries’ where they meet local people to discuss their problems. Use your right to speak directly to your MP, to inform them of the difficulties older people face thanks to Council Tax rises.

Frequently asked questions

Where can I find out more about the impact of high Council Tax on older people?
Download The impact of council tax on older people's income (PDF) report from Help the Aged and the New Policy Institute.

How can I find out if I qualify for Council Tax relief?
Find out what you're entitled to by visiting the benefits info section of this website, or download our handbook, Can You Claim It? (PDF).

You can also get a free benefits health check by calling SeniorLine, our free welfare rights advice service.