Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Four million pensioners face council tax hike as single-person discount under threat

by September 7, 2024
September 7, 2024
Four million pensioners face council tax hike as single-person discount under threat

Millions of pensioners living alone could be hit with higher council tax bills if Housing Secretary Angela Rayner scraps the 25% single occupier discount, potentially compounding financial pressures as they also face losing winter fuel payments.

Analysis reveals that around half of the 8.4 million people affected by the potential abolition of the single-person council tax discount are retirees. The discount currently reduces the average Band D council tax bill by approximately £543 per year and saves the public purse about £3 billion annually, according to the Institute for Fiscal Studies (IFS).

Angela Rayner, who did not rule out removing the discount this week, is under fire for the potential impact on older people, many of whom are already struggling with rising living costs. The announcement follows Chancellor Rachel Reeves’s decision to means-test winter fuel payments, which previously provided up to £300 to around 10 million pensioners, aiming to save £1.4 billion for the Treasury.

Jan Shortt, general secretary of the National Pensioners Convention, criticised the potential removal of the discount, calling it an “unforgivable betrayal” of older people that could force them to give up their homes. “It seems older people, who have no voice in parliament, are seen as easy targets,” she said.

Graham Stuart, a Conservative MP, echoed these concerns in the House of Commons, highlighting the strain on pensioners who are losing both their winter fuel payments and council tax discounts. “That is taking hundreds of pounds from those that can least afford it. We cannot have such an unnecessary impact on pensioners,” he said.

Speaking in the Commons, Rayner assured there were no current plans to increase council tax, but did not commit to keeping the single-person discount. When pressed on the issue, she responded, “This Government is about making sure that working people are better off, and we intend to do that.”

Data from the Ministry of Housing, Communities and Local Government shows that around 8.4 million homes in England benefit from the 25% discount for single occupants, with an additional 253,000 households qualifying due to other residents being disregarded for council tax purposes. Figures from the Office for National Statistics (ONS) indicate that half of those living alone are aged over 65.

The largest number of single-person households eligible for the discount are found in Birmingham, where 152,000 people benefit from the tax saving. Other top hotspots include retiree-friendly rural areas such as Cornwall, Somerset, and North Yorkshire. As the UK’s population ages, the number of people living alone is rising, with an 8% increase in single-occupant households recorded over the past decade.

Caroline Abrahams, charity director at Age UK, warned that older people living alone already face significant challenges with fixed household costs that do not diminish for single occupants. She stated, “If the single person discount for council tax was abolished, many pensioners—particularly widows—could find their finances severely strained, especially if they also lose their Winter Fuel Payment.”

A spokesperson for the Housing Department maintained that the government currently has no plans to reform council tax, but the potential changes have already sparked concern among pensioner advocacy groups and MPs alike.

Read more:
Four million pensioners face council tax hike as single-person discount under threat

0
FacebookTwitterGoogle +Pinterest
previous post
Onlyfans’ Ukrainian-born owner Radvinsky reaps £1bn from adult content platform
next post
Pimlico Plumbers founder Charlie Mullins to sell £12m penthouse as he exits UK ahead of tax hike fears

You may also like

The Restaurant Group sees first sign of customers...

September 9, 2022

How Job Hopping Can Make or Break Your...

November 28, 2022

Klarna slashes 1,000 jobs as AI reshapes business...

August 28, 2024

Joules on brink of collapse as it enters...

November 14, 2022

UK government borrowing less than expected as tax...

July 21, 2023

Declining Job Vacancies Stoke Hopes for Interest Rate...

April 29, 2024

Beating Content Decay: How to Revitalise Your Company’s...

October 24, 2024

Getting AI right: How automation can help manage...

May 20, 2024

Taxes on wine and spirits set to rise...

January 31, 2025

Close Brothers sets aside £165m amid car loan...

February 12, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Business leaders paralysed by risk warn BDO as caution stifles growth

      June 9, 2025
    • Starmer pledges £1bn investment to supercharge UK tech and AI infrastructure

      June 9, 2025
    • 5 terrifying flashpoints that could ignite global war

      June 9, 2025
    • HMRC inheritance tax investigations surge 37% as treasury seeks to plug revenue gap

      June 9, 2025
    • Believ secures £300m to roll out 30,000 public EV charge points across the UK

      June 9, 2025
    • US and China hold London talks to ease trade war tensions

      June 9, 2025

    Categories

    • Business (8,160)
    • Investing (2,019)
    • Politics (15,572)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved