Welfare Cuts Mean a Dramatic Rise in Council Tax for the Poorest

The decision to reduce the budget for council tax support by 10 per cent means low-income households face a tax increase of up to £600. Council Tax Benefit, the most widely claimed benefit in the UK, which provides 5.9 million low-income families with help paying their council tax will soon be abolished. From 1 April, responsibility for council tax support will transfer from Whitehall to local authorities in England. Few have yet grasped the full implications.  Three-quarters of English councils are set to introduce less generous systems of council tax support. Over a third are set to introduce schemes that severely reduce support. Only around a quarter of councils feel they are able to absorb the funding shortfall and maintain current levels of support.  What does this mean for low income households? The answer is set out in a report – No Clear Benefit - from the Resolution Foundation. It shows that while the government talks up its decision to "freeze" council tax, millions of households – both in and out of work –in fact face swingeing increases.  Download a copy of the report from the Resolution Foundation website.