Council Tax: Low-income Taxpayers

Lord Beecham Excerpts

Monday 9th February 2015 Lords Chamber

Asked by

[Lord Beecham]

To ask Her Majesty’s Government what assessment they have made of the impact on low-income taxpayers of the changes to the Council Tax Support Scheme and reduction in funding for the Council Tax Reduction Scheme.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Lord Ahmad of Wimbledon) (Con)]

My Lords, these are local schemes and it is for local authorities to ensure that the effect on specific groups of council tax payers is both proportionate and fair. We made a £100 million transition grant available in 2013-14 to help councils to develop well designed schemes and maintain incentives to work.

[Lord Beecham (Lab)]

My Lords, in Newcastle alone, as a result of government cuts to council tax support, 18,000 working-age households, 4,500 of which are in work, have lost out, while 11,000 that were previously exempt have to pay 20% of the council tax and 7,000 that were formerly partially exempt now have to pay 20%. Arrears stand at £2.8 million. How do the Government justify this imposition on some of the most hard-pressed families and individuals in the country?