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Council Tax benefit system “unfair” for poorest

Summary

This Report 'Local Government Finance: Council Tax Benefit' (HC 718-I) says that the current council tax relief system is unfair for low income households.

Attitudes towards the council tax are influenced by views as to its fairness, with one of the concerns being that it does not take sufficient account of a household’s income. Council Tax relief enables the liability of some households to be reduced. Although it is not a benefit, it is called a benefit and in many ways operates like a benefit. People only receive it if they make a claim and as a result there is an estimates £1.8 billion unclaimed each year.

The Committee believe that there are two main weaknesses in the operation of the current system:

  • Rules of eligibility are too strict to reduce the burden to those in greatest need
  • Take up is low.

In the Report, the Committee call on the Government to take urgent action to tackle these problems.

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Law-Making Explained

This is a House of Commons Paper (HC 718-I 2006-07): it is a Report from the House of Commons Communities and Local Government Committee.

Find out more about Select Committees.

How does it affect me?

If you pay Council Tax, this affects you.

Have Your Say Now

Read more on the work of the House of Commons Communities and Local Government Committee.

See more on Council Tax benefit on Direct.gov.

Find out more about Council Tax policy on the Valuation Office Agency website.


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