Only half of pensioners entitled to Council Tax Reduction are claiming the support, according to new research from Independent Age, leaving an estimated £1.71 billion unclaimed. The average Council Tax bill is now £2,392 a year, meaning successful applicants could save around £46 every week, and in some cases reduce their bill to £0.
Regional differences in take-up
The charity's report found that increasing take-up of Council Tax Reduction among people above State Pension age could lift around 74,000 older households out of poverty across Great Britain. The North East recorded the highest take-up rate at 60 per cent, while the South East and South West had the lowest rates at 46 per cent.
Council Tax Reduction is designed to help people on low incomes meet the cost of their Council Tax bill. Depending on a person's circumstances, the support can significantly reduce the amount they have to pay, and in some cases cut their bill to £0.
Impact on pensioners' budgets
Independent Age said many older people are struggling with rising household costs and view Council Tax as a priority bill, even if it means cutting back elsewhere. Research carried out by the charity found some pensioners were reducing spending on essentials such as food, heating and water in order to keep up with Council Tax payments. Others reported getting into debt because of the cost.
The charity also found confusion among some older people about the difference between Council Tax Reduction and Council Tax discounts, which it believes may be preventing some households from claiming support.
Calls for better awareness
Joanna Elson, chief executive of Independent Age, 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 Council Tax Reduction 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."
The charity is calling on the UK Government and local authorities to improve awareness of Council Tax Reduction and make it easier for eligible households to claim. Council Tax Reduction schemes are administered by local councils, with eligibility and the level of support available depending on a person's income, savings and household circumstances. Pensioners who think they may qualify for help should contact their local authority or visit MYGOV.SCOT to check the rules for their area.
