Council Tax: Low-income Taxpayers

Baroness Hollis of Heigham Excerpts

Monday 9th February 2015 Lords Chamber

[Lord Ahmad of Wimbledon]

The Government have addressed all concerns. I think the noble Lord is being disingenuous about what the Government are seeking to do. We have ensured empowerment to local authorities to prioritise local spending. The impact and effectiveness of this policy, as I am sure the noble Lord is aware, will be reviewed by assessing three years of full data. It is also important to mention that the Government have sought to bring council tax spending under control. Sixty per cent of councils in England have frozen or reduced their council tax this year as well, and the Government have made these freezes possible for five successive years. I think it is about time that we acknowledged that.

[Baroness Hollis of Heigham (Lab)]

My Lords, the Government have introduced universal credit, which we support, which seeks to bring together and simplify means-tested benefits for people of working age in a single benefit. Why, then, are the Government sabotaging that by extracting council tax benefit from the system and turning it into a postcode lottery, where the amount of help you get depends not on your need but on the accident of where you live?

[Lord Ahmad of Wimbledon]

I am sorry, but I do not recognise the noble Baroness’s description. I have already alluded to the fact that the Government will review this policy after three years. At that time, this element will be considered for possible inclusion in universal credit.