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Monday, February 03, 2014

Safety net - full of holes

The Government cut the amount of funding for council tax benefit by 10 per cent, or £500m, as part of its efforts to bring down the welfare bill. Ministers instructed local authorities to protect pensioners from the benefit cut, leaving other benefit recipients with larger bills. While most of the publicity over benefit cuts has centred on the bedroom tax, the cut to council tax benefit is having a similar impact nationwide. Although the councils are imposing the cuts from their town halls, they insist they have no choice but to pass on the reduction because of the centrally imposed cut. The coalition introduced a safety net for those affected with a £100m "transitional funding" allowance introduced in October 2012. But that money will run out this April, meaning that about 270,000 of the poorest households will have to pay £80 a year more in council tax.

70,000 low earners, single parents, and disabled people are being pursued by bailiffs over their failure to pay the "new poll tax", according to figures revealed for the first time.

The country's poorest people, who qualify for means-tested council tax benefit, have seen their annual bills rise after the Government imposed a 10 per cent reduction in funding for the handout last April.

New figures revealed by Freedom of Information requests show that 400,000 people have had liability orders imposed by the courts, while 70,000 of these have had letters from bailiffs. It was already known that 2.3 million people have received higher bills, with 600,000 of those in arrears. Some 500,000 have been issued with court summons for non-payment of council tax.

A recent estimate by the Resolution Foundation think tank suggested that the average increase in council tax was between £100 and £250 a year, but for some the extra annual bill has been as much as £600.  394,000 disabled people have faced an increase in council tax, including 117,000 in receipt of severe or enhanced disability premiums. Some 2,900 war widows or Armed Forces veterans face increases. Many of those affected are also hit by cuts to housing benefit, or bedroom tax.

From here 

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