Millions of the poorest working-age people in England could face council tax bills of up to £250 for the first time, as local authorities scramble to fill a funding gap left by the government's scrapping of the national council tax benefit scheme.
From April, councils will receive only 90% of the funding previously allocated to support benefit claimants, forcing them to decide how to make up the shortfall. While pensioners are protected, working-age claimants are being asked to contribute.
North Tyneside Council, facing a £1.8m deficit, is proposing to require all working-age council tax payers to pay at least 20% of their bill. For those previously exempt, this could mean a bill of £200 or more. The Conservative-led council argues that excluding maintenance, child benefit, and some disability payments from income calculations will protect the poorest, and that a public consultation supported the idea.
But single dad Colin Banks, who gave up work to care for his child, said the change would force him and his child to live on less than they can physically manage. Denise Downey, a part-time worker earning £500 a month, said she would face a choice between paying the tax and affording food and utilities, warning it would lead to arrears and court action.
Other Labour-run councils are considering similar measures. Newcastle and Sunderland may ask for a minimum 8.5% contribution, while South Tyneside is looking at a 30% contribution from non-disabled claimants, potentially pushing bills above £250. However, some councils, including Northumberland, Copeland, and Eden, plan to protect existing claimants fully.
The proposals have yet to be finalised, with full council meetings offering a chance for reconsideration. But the trend towards asking the poorest to contribute marks a significant shift in local taxation policy.
