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Low-income households face council tax hike

Your Money
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Your Money
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31/01/2013

Some of the lowest income households in England face a rise in council tax after a government cut to funding.

The government announced plans to cut its contribution to a council tax support programme by 10% with local councils now being forced to fill in the gap or raise the cost of council tax for low earning families.

Research from the Resolution Foundation said that an average council tax bill would rise by between £100 and £250 a year, although some areas will face rises of up to £600.

The Welsh government has taken the decision to fund the shortfall in Wales while in Scotland the government and local councils will split the cost.

English councils will be left with the choice of absorbing the cost into their budgets or raising council tax. The report suggests around three-quarters of the 326 councils in England would take the decision to raise council tax for their residents.


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