More than two million of the poorest people in England are facing rising council tax demands this year because of fresh Government cuts to the benefit system, new figures reveal today. War widows, carers and the disabled are among 2.31 million people who used to be entitled to council tax benefit but have now had their support substantially reduced or taken away altogether.
As a result, significant numbers of families have been pushed into debt, with a survey revealing that nearly 16,000 people in London alone have been referred to the bailiffs for non-payment.
Under changes to the benefits system that came into full effect this year, councils have lost nearly half a billion pounds that was previously provided by central government to cut or eliminate the council tax bills for local residents on low incomes. Council Tax Benefit used to provide nearly £5bn of support to 5.9 million people. But in 2013 the Government cut the grant by £300m – and told councils they would have to find the difference from saving or by reducing the benefit to poor residents. In April this year the cut was increased to around £400m – which equates to around 10 per cent of the total fund.
As a result millions of families on low incomes have received council tax demands for the first time and hundreds of thousands of people face being summoned to court if they are unable to pay. 409,000 disabled people have seen their council tax increase, while 112,000 carers have also been hit. Some 3,600 recipients of pensions relating to being a war widow or a disabled veteran as a result of service in the Armed Forces have seen their council tax increase.
The Citizens Advice Bureau said that one in five people reporting debt problems are now facing council tax arrears. “The number struggling with council tax payments has rocketed since council tax benefit was replaced by localised council tax support schemes. “Between January and March 2014, 42 per cent of those approaching Citizens Advice for help with arrears were employed, compared to 28 per cent unemployed.”
As a result, significant numbers of families have been pushed into debt, with a survey revealing that nearly 16,000 people in London alone have been referred to the bailiffs for non-payment.
Under changes to the benefits system that came into full effect this year, councils have lost nearly half a billion pounds that was previously provided by central government to cut or eliminate the council tax bills for local residents on low incomes. Council Tax Benefit used to provide nearly £5bn of support to 5.9 million people. But in 2013 the Government cut the grant by £300m – and told councils they would have to find the difference from saving or by reducing the benefit to poor residents. In April this year the cut was increased to around £400m – which equates to around 10 per cent of the total fund.
As a result millions of families on low incomes have received council tax demands for the first time and hundreds of thousands of people face being summoned to court if they are unable to pay. 409,000 disabled people have seen their council tax increase, while 112,000 carers have also been hit. Some 3,600 recipients of pensions relating to being a war widow or a disabled veteran as a result of service in the Armed Forces have seen their council tax increase.
The Citizens Advice Bureau said that one in five people reporting debt problems are now facing council tax arrears. “The number struggling with council tax payments has rocketed since council tax benefit was replaced by localised council tax support schemes. “Between January and March 2014, 42 per cent of those approaching Citizens Advice for help with arrears were employed, compared to 28 per cent unemployed.”
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