Certain households could face a council tax increase

Millions of poorer households could be affected by changes to council tax, a study has suggested

15:31 31 January 2013

Research carried out by the Resolution Foundation think-tank has suggested that millions of poorer householdscould face higher council tax bills. Changes to council tax charges would be expected to come into effect next April.

 

The reason for the rise is being attributed to England’s councils having to make their decision on council tax benefits, the study says. Following a 10per cent cut from the Government, many councils may look to decreasing the amount of council tax benefit that low-earners have available to them.

 

If this is the case, millions of households could be affected by the move.

 

Those people who would be hit by higher bills would be those with lower-incomes, as well as those people who are exempt from paying the full council tax bill.

 

Minister Brandon Lewis has said that: “Under the last administration, more taxpayers' money was being spent on benefits than on defence, education and health combined.

 

Mr. Brandon added that: “We are on the side of people who work hard and want to get on."

 

It is understood that pensioners will still receive support however. And some councils are thought to be assessing their budgets so that they can help with the situation regarding poorer homes.

 

And 40 local authorities are already set to keep their support in place, a report by the BBC has stated.

 

The situation surrounding councils relates to many working on council tax benefits aside from the Government. The Coalition’s view is reportedly in favour of poorer households, although there are reports saying that some councils claim they feel restricted when it comes to the topic.

 

It is understood that councils have received a £100million grant from the Government, although there are concerns from some ministers over the current situation.