More than 2.5 million working age people across England claimed a
discount on their council tax between April and June this year -
the highest number since records began in 2015.
The Local Government Association said this number is expected to
have risen further over the summer and may continue to rise in
future years due to the knock-on economic fall-out from the
pandemic.
Analysis commissioned by the LGA from LG Futures estimates that
the cost of the increased claimant numbers of council tax support
due to COVID-19 in 2020/21 could be at least £586 million.
It is warning that rising numbers of families on low incomes are
likely to face bigger council tax bills unless government fully
funds the record demand for council tax support as part of the
Spending Review.
Local council tax support has provided those on low incomes with
a discount on their council tax since 2013 when the national
benefit was abolished. However, the funding government has given
to councils to fund these schemes has reduced by around half - £2
billion – between 2013 and 2020.
Even before the pandemic exacerbated demand pressures, councils
already faced an unpalatable choice between charging council tax
to the working-age poor, who in many cases may not have paid
council tax before or diverting limited resources from other
under-pressure services.
Cllr , Chair of the
Local Government Association’s Resources Board, said:
“Councils know how tough things are for many people as a result
of COVID-19 and are desperate to protect those affected the most.
“The sharp rise in council tax support claimants is heaping
further pressure on this already underfunded vital local safety
net. No one wants to ask those on the lowest incomes to pay more
but councils have faced an impossible position that the pandemic
has made worse.
“The Government must ensure councils have the full amount of
funding required to provide council tax support to those who need
it.
“Otherwise, it is almost inevitable that bills will continue to
be forced up for those who can least afford to pay.”
NOTES TO EDITORS
Anyone on a low income may be entitled to help from their council
towards paying council tax. Since 1 April 2013, local authorities
in England have been responsible for running their own local
schemes for help with council tax. Every local council has
different rules around the support on offer. This may be:
- a discount worked out as a percentage of your council tax
bill
- a discount of an amount set out in the scheme
- a discount equal to the whole amount of the council tax bill
- so that the amount payable is nil.
Figures for the first quarter of 2020/21 reveals that more than
2.5 million working age people across England claimed a discount
on their council tax between April and June.
That was an increase of 9 per cent from the same quarter in 2019,
and the highest number for any quarter since records began in
2015/16.
MHCLG:
Live tables on local government finance
Table on
claimant numbers per quarter for localised Council Tax support
for local authorities in England
