More than 1.3 million pensioners are missing out on support worth up to £2,900, even though they are entitled to claim the money. The Government and local councils could do more to inform people about the help available, according to campaigners at Independent Age.
Council Tax Reduction Scheme
The support comes from a scheme called Council Tax Reduction, which can reduce council tax bills to zero. Currently, 2.7 million pensioners are eligible, but only around 50% are claiming the support, a new Independent Age report titled “Missing out on millions” warns today.
For some people, this support could mean the difference between turning on the heating in winter or shivering in the cold, say campaigners.
Impact on Poverty
The charity found that if every eligible household above State Pension Age claimed the support, administered by the Department for Work and Pensions (DWP), it would reduce the number of older households living in poverty by a staggering 74,000 in Great Britain.
There is significant variation in take-up. The areas with the lowest take-up are the South West and South East England at 46%, while the North East of England has the highest take-up at 60%.
Council Tax Reduction can reduce an average bill from £2,392 to £0, providing a low-income older household with a saving of £46 per week.
Struggling to Make Ends Meet
As part of the research, Independent Age surveyed older people on low incomes. Many respondents described Council Tax as a cost that stretched their finances to breaking point, but one they viewed as a priority to pay to avoid falling behind. This is forcing many older people in financial hardship to cut back on other essential costs like water, food and energy, and for some, to get into debt.
Roy, 66, from Birmingham, a recipient of Council Tax Reduction, said: “If I hadn’t applied for Council Tax Reduction, I’d be paying more than £900 a year in Council Tax. The money I’m saving on my Council Tax bills means that I don’t have to be cold in winter and I can turn my heating on. I don’t have to worry so much if a bill that is higher than expected comes or if I have any unforeseen expenses. And I can afford to buy myself fresh and healthy food.”
Call for Action
Independent Age Chief Executive Joanna Elson said: “Older people on low incomes are having their budgets stretched to breaking point, and rising Council Tax is pushing far too many pensioners deeper into financial hardship. Our research shows that lack of CTR take-up is keeping a shocking 74,000 older households in poverty. It’s not right that people in later life are cutting back on essentials such as food and heating so they can cover their Council Tax bill when this help is available to them.”
“Both the UK Government and local authorities have a role to play in ensuring Council Tax Reduction is well publicised and reaching those that need support. If the UK Government is serious about raising living standards, it must increase the level of support it provides to local authorities for delivering Council Tax Reduction and help lift tens of thousands of older people out of poverty.”
