Benefit claimants to face paying council tax bill

From next year authorities will receive less Government funding towards council tax discounts for those on benefits. In Hull where some 40 per cent of households – 39,584 homes – receive council tax benefit, at a cost in 2011/2012 of just over £27m, the council has to make up a £2.7m shortfall.

Under proposals going out to consultation later this summer, everyone of working age will have to pay some of their council tax.

More than 15,000 pensioner households are excluded. Council officers are recommending consulting on two options. One means people who have not paid council tax before will have to pay from £4.30 a week, and a second will start at £8.64.

Council leader Steve Brady said he did not know where people would find the money. “What Eric Pickles has done is he has just lopped off £2.7m and said ‘you deal with it how you want’.

“For some the rises will be very significant. We are already setting up a sub committee of the Cabinet looking at extreme poverty. ‘Bedroom’ tax is coming in next year [which involves cutting payments to social housing tenants in homes deemed bigger than their needs].

“People don’t realise what’s going to hit them next April. They will be really screaming from the rooftops. The extra is probably the amount that feeds you on a weekly basis for some people.”

The council has been discussing the fairest way to make up the gap with the voluntary sector. The consensus was that it was unfair to prioritise some groups over others. The changes are being driven by the Government, which wants to shave £500m off a £5bn benefits bill.

A report being discussed this Friday says the council would have to make cuts elsewhere if they do not approve a scheme which can make up the shortfall.

It adds: “Applying a standard cut... is considered the fairest option.”