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| Millions of people 'face council tax rise' | Millions of people 'face council tax rise' |
| (35 minutes later) | |
| Up to two million of the poorest households in England face higher council tax bills this year, the Local Government Association (LGA) says. | |
| From 1 April the government will cut by 10% the funds available to help reduce the council tax of people on low incomes. | |
| The government argues that such welfare reform is vital to tackle the budget deficit. | The government argues that such welfare reform is vital to tackle the budget deficit. |
| Debt charity StepChange said some homes would be unable to afford the change. | Debt charity StepChange said some homes would be unable to afford the change. |
| At present, 3.7 million people in England claim council tax benefit, in full or partial payment of their council tax. | At present, 3.7 million people in England claim council tax benefit, in full or partial payment of their council tax. |
| But in England from April, local authorities will become responsible for administering a new scheme, called council tax support (CTS), with the money they receive from central government to pay for it cut by 10%. | But in England from April, local authorities will become responsible for administering a new scheme, called council tax support (CTS), with the money they receive from central government to pay for it cut by 10%. |
| Devolved issue | Devolved issue |
| Pensioners will be protected under the new scheme, so will continue to receive the same level of help with paying council tax as they did previously. | Pensioners will be protected under the new scheme, so will continue to receive the same level of help with paying council tax as they did previously. |
| There may also be limited protection for "vulnerable" households, particularly where children are involved. | There may also be limited protection for "vulnerable" households, particularly where children are involved. |
| People living in Scotland and Wales will also be unaffected, as the devolved administrations have decided to find the money elsewhere. | People living in Scotland and Wales will also be unaffected, as the devolved administrations have decided to find the money elsewhere. |
| All of which means that English councils are likely to target people of working age, but who are amongst the poorest in society. Some will be out of work. | All of which means that English councils are likely to target people of working age, but who are amongst the poorest in society. Some will be out of work. |
| The Local Government Association says this will affect two million people, who on average will have to pay almost £350 a year more. Some will be paying a proportion of council tax for the first time. | The Local Government Association says this will affect two million people, who on average will have to pay almost £350 a year more. Some will be paying a proportion of council tax for the first time. |
| A StepChange spokesman said: "We're worried they will be forced to choose between eating, heating or taking out credit in order to pay council tax demands." | A StepChange spokesman said: "We're worried they will be forced to choose between eating, heating or taking out credit in order to pay council tax demands." |
| 'Close to edge' | 'Close to edge' |
| At least 40 local authorities in England have decided to maintain current levels of support. Durham County Council and Tower Hamlets are amongst those which will absorb the costs of CTS into their budgets. | At least 40 local authorities in England have decided to maintain current levels of support. Durham County Council and Tower Hamlets are amongst those which will absorb the costs of CTS into their budgets. |
| But according to a new survey, three-quarters of English councils have voted to place the extra burden on households which currently claim council tax benefit. | But according to a new survey, three-quarters of English councils have voted to place the extra burden on households which currently claim council tax benefit. |
| The study, by the Resolution Foundation, says that some people could face increases in their bills of £600 a year. | The study, by the Resolution Foundation, says that some people could face increases in their bills of £600 a year. |
| "Millions of England's poorest households, both in and out of work, are already very close to the edge," says Gavin Kelly of the Resolution Foundation. "They are going to find it very hard to cope." | "Millions of England's poorest households, both in and out of work, are already very close to the edge," says Gavin Kelly of the Resolution Foundation. "They are going to find it very hard to cope." |
| Tax freeze | Tax freeze |
| By Thursday evening, all 353 local authorities in England must decide how they are going to pay for the new council tax support. | By Thursday evening, all 353 local authorities in England must decide how they are going to pay for the new council tax support. |
| Apart from increasing charges to householders, many are also reducing or removing a rebate available for a second adult living in the house. | Apart from increasing charges to householders, many are also reducing or removing a rebate available for a second adult living in the house. |
| Two-thirds of councils are expected to introduce a minimum payment. For example, many people will now be asked to pay a minimum of 8.5% of the council tax, regardless of their income. | Two-thirds of councils are expected to introduce a minimum payment. For example, many people will now be asked to pay a minimum of 8.5% of the council tax, regardless of their income. |
| Others will also lower the amount householders are allowed to save while still qualifying for support. | Others will also lower the amount householders are allowed to save while still qualifying for support. |
| At the moment most people are allowed to save £16,000 and still claim. According to the think tank the New Policy Institute, a fifth of councils will now reduce that threshold to £6,000. | At the moment most people are allowed to save £16,000 and still claim. According to the think tank the New Policy Institute, a fifth of councils will now reduce that threshold to £6,000. |
| The Local Government Association fears that for many people, paying the council tax may become extremely difficult. | The Local Government Association fears that for many people, paying the council tax may become extremely difficult. |
| "Paying the tax will be pretty low down the priority list, when you've got to feed yourself and feed your kids," said a spokesman. | "Paying the tax will be pretty low down the priority list, when you've got to feed yourself and feed your kids," said a spokesman. |
| "That could mean overall collection rates will go down, meaning less money for all council services." | "That could mean overall collection rates will go down, meaning less money for all council services." |
| The Department for Communities and Local Government said it had introduced a two-year freeze on council tax, with a further year to follow. | The Department for Communities and Local Government said it had introduced a two-year freeze on council tax, with a further year to follow. |
| Local Government Minister Brandon Lewis said: "Under the last administration, more taxpayers' money was being spent on benefits than on defence, education and health combined. | Local Government Minister Brandon Lewis said: "Under the last administration, more taxpayers' money was being spent on benefits than on defence, education and health combined. |
| "We are cutting council tax in real terms for hard-working families and pensioners, and we are on the side of people who work hard and want to get on." | "We are cutting council tax in real terms for hard-working families and pensioners, and we are on the side of people who work hard and want to get on." |