The Increase in Council Tax will Hit the Poorest

Joseph Rowntree Foundation announced that probably more than two million poor families living in the UK will suffer hard because of the tax benefit charges.

From the 1st of April after the changes do happen families with average low income will receive an increase of about £138 per year.

Council Tax Support (CTS) will replace the now existing Council Tax Benefit (CTB)

The rules in CTB are set on a national basis and Council Tax Support is structured by local councils. These will give local authority the possibility to set up the system in the way which will suit their local area in the best possible way.

It turns out, however that the money available to fund CTS is 10% lower than that of CTB.

This is the main reason why cuts may not be put off.

According to a research made by the Joseph Rowntree Foundation, 1.9 million people who nowadays do not have to pay council tax will later have to pay an average of £140 a year.

The head of poverty at Joseph Rowntree, Chris Goulden, shared his view that this extra cost will affect seriously poor families.

“This tax hike will push people into poverty or cause more hardship for already very poor households, taking money from families who had little to start with” he said.

The opinion of a spokesperson for the Department for Communities and Local Government was that this was just the next step of the government after all other things it did in order to freeze council tax bills.

She said: “The localisation of council tax benefit will give councils stronger incentives to cut fraud, promote local enterprise and get people back into work.”

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