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Council tax single person discount 'should be reviewed' | Council tax single person discount 'should be reviewed' |
(35 minutes later) | |
Wealthy people living alone in large homes should lose their council tax discount to fund more help for poorer families, local authorities say. | Wealthy people living alone in large homes should lose their council tax discount to fund more help for poorer families, local authorities say. |
Households with just one adult get a 25% discount on council tax at present. | Households with just one adult get a 25% discount on council tax at present. |
But the Local Government Association proposes that it claws back the £200m it currently loses from properties in England rated band E or above where only one person pays council tax. | |
The government said it had "no plans" to change the current system. | The government said it had "no plans" to change the current system. |
'Wealthy bachelor' | 'Wealthy bachelor' |
Peter Fleming, chairman of the Local Government Association (LGA) improvement board, said removing the discount would "protect discounts for struggling families and those who need it most". | Peter Fleming, chairman of the Local Government Association (LGA) improvement board, said removing the discount would "protect discounts for struggling families and those who need it most". |
Before April 2013, there was a national council tax benefit available but since that date people on a low income or claiming benefits must instead apply to their council to ask if they are eligible for a council tax reduction. | Before April 2013, there was a national council tax benefit available but since that date people on a low income or claiming benefits must instead apply to their council to ask if they are eligible for a council tax reduction. |
But the LGA argues that the shift in responsibility from national to local government was accompanied by a 10% reduction - equivalent to £410m - in government funding for council tax support. | But the LGA argues that the shift in responsibility from national to local government was accompanied by a 10% reduction - equivalent to £410m - in government funding for council tax support. |
Mr Fleming said: "It is difficult to justify why discounts for wealthy professionals living in large homes are protected while nearby there are low-income families struggling to make ends meet who are having their discounts cut. | Mr Fleming said: "It is difficult to justify why discounts for wealthy professionals living in large homes are protected while nearby there are low-income families struggling to make ends meet who are having their discounts cut. |
"This 'wealthy bachelor' discount currently costs councils £200m per year in lost council tax revenue and is subsidising individuals occupying large homes at a time when there is a dire shortage of housing." | "This 'wealthy bachelor' discount currently costs councils £200m per year in lost council tax revenue and is subsidising individuals occupying large homes at a time when there is a dire shortage of housing." |
Poll tax | Poll tax |
But Local Government Minister Brandon Lewis said ending the discount would amount to "a Bridget Jones Tax" - that would unfairly hit those who live alone. | But Local Government Minister Brandon Lewis said ending the discount would amount to "a Bridget Jones Tax" - that would unfairly hit those who live alone. |
At present, it is not just adults living alone who qualify for the 25% discount. | At present, it is not just adults living alone who qualify for the 25% discount. |
Because there are many groups of people who do not qualify as council tax payers - including children under 18, people on apprentice schemes, full-time students, people with a severe mental disability and live-in carers among others - any household which includes one paying adult among them would be subject to a discount. | Because there are many groups of people who do not qualify as council tax payers - including children under 18, people on apprentice schemes, full-time students, people with a severe mental disability and live-in carers among others - any household which includes one paying adult among them would be subject to a discount. |
The council tax replaced the poll tax - which was largely based on a per-person charge - in 1993. | The council tax replaced the poll tax - which was largely based on a per-person charge - in 1993. |
The proposals by the LGA, which represents councils in England and Wales, have been outlined to the Treasury ahead of this year's budget. | The proposals by the LGA, which represents councils in England and Wales, have been outlined to the Treasury ahead of this year's budget. |