This piece first appeared on the Saga Magazine website 28 March 2007
The text here may not be identical to the published text

Council tax: could you claim a rebate?

So now we know. Council tax on average will be an extra £1 a week for people in England. Slightly lower rises – in cash terms – will apply in Scotland and Wales, writes Paul Lewis

A pound a week may not seem much. But in the same week the basic state pension goes up by £3.05. In other words, nearly a third of the extra pension will go straight back to the Government in council tax.

Of course, a lot of older people – around two million – could get help with their council tax if they asked for it. Collectively that would save them well over a billion pounds a year. But there are no plans to make claiming easier or to relax the rules.

Last week, in a report on local government finance, Sir Michael Lyons recommended that council tax benefit should be renamed council tax rebate and the savings limit to get it should be raised from £16,000 to £50,000.

Local Government Minister Phil Woolas said "We will consider the wider proposals on council tax benefit in the light of practicalities and affordability". He added that any fundamental change in the structure of council tax itself would have to wait until after the next election.

That announcement was in sharp contrast to the Government's approach in Northern Ireland. There, the plans to impose new water charges on every household caused such controversy in the recent elections that Northern Ireland Secretary Peter Hain promised they would not be imposed by London if the DUP and Sinn Fein sat down together and agreed to share power.

Within hours of the historic agreement to do just that he went on television to make sure people in Northern Ireland knew that the water bills "though they are sitting in their envelopes, as we had made clear, will not be going out" so that the politicians taking power in Belfast "can take charge of the issue and they can do what they want to do."

In the rest of the UK the Government is reluctant to make any change in local taxes. Meanwhile people can help themselves before the new charge begins on Sunday.

• If you live alone claim your 25% discount. This is not related to your income – it just depends on being the only adult in the house. Students and some others do not count as adults and do not stop you getting the rebate.

• If your home has been adapted for someone with a disability you may be able to get your home moved down one tax band – that will cut your tax by about 17%.

• If your income is low you may qualify for what Sir Michael calls a council tax rebate.

Ask your council. For once you might hear something you like.


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