Just 52% of eligible pensioners across Greater London are receiving Council Tax Reduction (CTR), meaning around £179 million in vital support isn’t reaching those who need it, according to new research launched today by Independent Age. In its new report “Missing out on millions”, the charity found that increasing CTR take up to 100% for those above State Pension Age would reduce the number of older households living in poverty by a staggering 74,000 in Great Britain.
New numbers from Independent Age also show that there is significant variation in CTR take-up across England. In London, an estimated 180,500 older people are missing out on the benefit.
As an entitlement, Council Tax Reduction can reduce an average bill from £2,392 to £0, providing a low-income older household with a saving of £46 per week. And unlike with other bills, households struggling to afford their Council Tax cannot reduce this set cost or shop around for better deals.
As part of the research, Independent Age surveyed older people on low incomes. Many respondents described Council Tax as a cost that stretched their finances to breaking point but one they viewed as a priority to pay to avoid falling behind. This is forcing many older people in financial hardship to make cutbacks on other essential costs like water, food and energy, and for some, to get into debt.
The charity also found there is confusion among many older people around the difference between CTR and Council Tax discounts, potentially reducing the number of people receiving the support they are entitled to. The charity also found that many local authorities are experiencing ongoing funding pressures which limit their ability to boost awareness and increase take-up of the entitlement.
Thabani, 76, London, is a recipient of Council Tax Reduction and said:
“When I received their letter confirming my Council Tax Reduction, I felt elated. I used to pay £162.83 a month on my Council Tax bill. That means I’m saving almost £2,000 a year! Before, I had only £20 a week to spend at the supermarket, which had to include cat food and cleaning detergents. I was very restricted in what I could buy and had to depend on a food bank to get anything extra. I’m a lot less stressed about finances now. Getting these benefits has made a huge difference in my life and I’m very grateful for that.”
Independent Age Chief Executive Joanna Elson, CBE said:
“Older people on low incomes are having their budgets stretched to breaking point, and rising Council Tax is pushing far too many pensioners deeper into financial hardship. Despite being eligible, only 52% of pensioners in London are receiving Council Tax Reduction (CTR), meaning approximately £179 million in financial assistance is not reaching those entitled to it. Our research shows that lack of CTR take up is keeping a shocking 74,000 older households in poverty. It’s not right that people in later life are cutting back on essentials such as food and heating so they can cover their Council Tax bill when this help is available to them.
“Both the UK Government and local authorities have a role to play in ensuring Council Tax Reduction is well publicised and reaching those that need support. If the UK Government is serious about raising living standards, it must increase the level of support it provides to local authorities for delivering Council Tax Reduction and help lift tens of thousands of older people out of poverty.”