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Council tax has risen more sharply in areas with greater numbers of pensioners, and the average pensioner also pays proportionately more council tax than younger people do, according to research from the Halifax.
On average, council tax accounts for 6% of household income amongst the over 75s. This compares with only 3% of total spending for people aged younger than fifty.
Overall, council tax bills for all households have risen 121% since 1993, significantly outstripping the estimated 82% increase in average net income, including council tax benefit, for pensioners over the period.
Although there are approximately 9 million households in Great Britain aged 60 or higher, there are just 2.4 million households aged 60 or higher in Great Britain, which receive council tax benefit.
The research found that council tax bills have risen faster than average in areas with the most pensioners. Since 1993/94, the average council tax bill per dwelling for all households in the 20 English Local Authorities (LAs) with the highest proportion of pensioners has increased by 149%, compared with a 121% rise in the overall average bill over this period. Chichester recorded the fastest increase, up 173% from £456 to £1,244.
Christchurch in the South West of England is the local authority with the most pensioners - 30% of the population there is aged 65 or above. (Source: ONS) The average council tax bill in Christchurch has risen by 171%, one of the fastest rates of increase for areas with a high number of pensioners.
2.4 million households receive council tax benefit and the average obtains a rebate of £619 per year. However, Halifax's research did not take account of pensioners claiming council tax benefit.
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Increase in average council tax bills over 1993/94 to 2005/06 in areas with highest proportion of pensioners – England |
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Local Authority |
Region |
Average council tax per dwelling 1993/94 £s |
Average council tax per dwelling 2005/06 £s |
% Increase in average bill since 1993/94 |
% of population aged 65 and over |
|
Chichester |
South East |
456 |
1244 |
173% |
23% |
|
New Forest |
South East |
423 |
1152 |
172% |
23% |
|
Christchurch |
South West |
441 |
1193 |
171% |
30% |
|
West Dorset |
South West |
439 |
1189 |
171% |
24% |
|
East Dorset |
South West |
516 |
1356 |
163% |
26% |
|
North Norfolk |
East of England |
392 |
1024 |
161% |
26% |
|
Lewes |
South East |
474 |
1229 |
159% |
23% |
|
East Devon |
South West |
461 |
1160 |
152% |
27% |
|
South Shropshire |
West Midlands |
455 |
1149 |
152% |
22% |
|
Rother |
South East |
484 |
1208 |
150% |
29% |
|
West Somerset |
South West |
432 |
1054 |
144% |
27% |
|
Eastbourne |
South East |
450 |
1093 |
143% |
24% |
|
Torbay |
South West |
399 |
970 |
143% |
23% |
|
Worthing |
South East |
432 |
1045 |
142% |
23% |
|
East Lindsey |
East Midlands |
351 |
850 |
142% |
23% |
|
Arun |
South East |
468 |
1127 |
141% |
26% |
|
Tendring |
East of England |
399 |
959 |
140% |
26% |
|
Teignbridge |
South West |
477 |
1110 |
133% |
22% |
|
Fylde |
North West |
508 |
1101 |
117% |
23% |
|
Wyre |
North West |
485 |
1034 |
113% |
22% |
|
|
England |
456 |
1009 |
121% |
16% |
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Source: DWP, ODPM, ONS |
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