Austin Macauley 25 July 2014

Count tax benefit cuts leave two million with rising bills

Government cutbacks to the benefits system have left more than two million people facing the prospect of higher council tax bills.

Freedom of Information requests sent by Labour to councils in England reveal 409,000 disabled people have seen their council tax increase, while 112,000 carers have also been hit.

The changes have taken nearly half a billion pounds away from local authorities that was provided by Government to help support people on low incomes by reducing their bills.

The figures, revealed by The Independent, also show 3,600 war widows and disabled veterans have seen their bills rise as a result of council tax benefit cuts.

‘The number struggling with council tax payments has rocketed since council tax benefit was replaced by localised council tax support schemes,’ said the Citizens Advice Bureau.

‘Between January and March 2014, 42% of those approaching Citizens Advice for help with arrears were employed, compared to 28% unemployed.’

Cllr Sharon Taylor, chair of the Local Government Association’s finance panel, told the paper: ‘When Government handed the responsibility for administering council tax support to local authorities, it cut hundreds of millions in funding for it.

‘The shortfall between the money councils receive and the money we would need to protect those on low incomes is likely to reach £1bn by 2016.

‘At the same time, councils are tackling the biggest reductions to funding in living memory. This has put many local authorities in an impossible position. We have been urging government to give local authorities the full amount of funding needed to protect council tax support for those on low incomes.’

A spokesperson for the Department of Communities and Local Government said: ‘Spending on council tax benefit doubled under Labour. Welfare reform is vital to tackle Labour’s budget deficit.’

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