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 Elderly hit in council tax triple whammy

 

Monday, November 28, 2005


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.

Increase in average council tax bills over 1993/94 to 2005/06 in areas with highest proportion of pensioners – England

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%

Source: DWP, ODPM, ONS

 
 
     
     
 

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