Warning as millions face up to £549 council tax hike | Personal Finance | Finance
Millions of people – including widows – could be hit with a huge council tax hike next year – a new analysis has claimed.
There are concerns the government could scrap the single-person discount on council tax, which is worth at least 25 percent.
If that happened then many pensioners who live alone, many of whom have already lost their winter fuel allowance, could face an extra hit to their pockets.
More than a million pensioners in the UK are eligible for the single-person discount, along with 1.6 single parents with dependent children and millions of other people.
According to the Taxpayers’ Alliance, the average increase for people in England living in Band D properties would be around £549, along with £515 in Wales and £353 in Scotland – although this would vary by council area.
A total of 20 local authorities in England would have people living in Band D homes see their bills rise by more than £600 if the discount was scrapped – with people in Rutland seeing the highest increase at £636, followed by Nottingham at £632.
Challenged by reporters on his trip to Washington this week to meet US President Joe Biden, Prime Minister Keir Starmer denied the assertion that cancelling the single-person discount could amount to a ‘punishment beating’ for pensioners.
Mr Starmer said he would not pre-empt the Autumn budget, which Chancellor Rachel Reeves is set to announce on October 30.
He added: “I’m not going to say before the Budget what we’re going to do.
“That does not mean that I’m ruling in anything that you might be putting to me, it simply means, like every Prime Minister, we’re not going to reveal what’s in the Budget before we get to it.”
A briefing from the Taxpayers’ Alliance said: “Removing the discount for single-person households would represent a £5.4 billion tax increase affecting up to 10.3 million households.
“£1.9 billion of this tax increase would be on pensioners aged 66 years and older.
“£983 million of this tax increase would be on single parents with dependent children.”
It added: “While such a change would constitute a simplification of the tax system, it would further increase the tax burden, which is already set to reach an 80-year high by 2028-29.”
