Tax benefit changes ‘hit the working poor’

GOVERNMENT proposals to localise council tax benefit are arbitrary, unfair and hit the working poor hardest, says Labour.

Ministers at the Department for Communities and Local Government were urged to drop the plans, which would see different rates of council tax benefit paid in different parts of the country from next year.

During a Commons debate, Shadow Communities Minister Helen Jones said: “You need to accept the scheme you are proposing is arbitrary, unfair and hits the working poor most.

Hide Ad
Hide Ad

“How can you possibly justify cuts of between 13 per cent and 25 per cent in benefits for people of working age and a switch from annually managed expenditure to grant, which means any increase in claims will be paid for by cuts in benefits for the poorest people?”

Communities Minister Andrew Stunell replied: “I’d like to remind you the proposals in this will also give to local authorities the capacity to vary the discounts on second homes and on empty homes.

“There is extra income for local authorities here, there is scope for efficiency and there is scope for them to tailor their schemes to their local circumstances.”

Earlier Local Government Secretary Eric Pickles had praised the 152 councils that have signed up to a council tax freeze offer. The Government has set aside up to £675m for local authorities to keep council tax down.

Hide Ad
Hide Ad

Mr Pickles said: “This will be welcome news for many council taxpayers who’ve seen their bills double since 1997. It is very early in the budget setting process, and I would fully expect this number to increase significantly over the next few weeks.

“A vote against a freeze is a vote for a punitive tax-rise when typical bill are already around £120 a month.“

Related topics: