Wednesday 12th March 2008
More must be done to help vulnerable consumers receive the council tax benefits to which they are entitled, it has been suggested.
According to the Local Government Association (LGA), £1.8 billion of potential council tax benefits are not claimed each year.
Some six million people who reside in homes which pay full council tax each year are living in poverty, the organisation says.
Vice-chair Sir Jeremy Beecham urges a "much-needed overhaul" of the system to be put in place as part of the 2008 Budget.
"Its unacceptable that 1.5 million children and one million pensioners in poverty are living in households that pay full council tax," he says.
"The whole system desperately needs to be simplified and the financial limits on eligibility increased."
Among the discrepancies identified by the LGA is the fact that anyone claiming Working Tax Credits is not also eligible for assistance with council tax.
Furthermore, those who claim lose their council tax rebate entitlement before they begin to pay income tax.
Suggestions made by the organisation include an increase in the savings threshold to prevent people being expected to use long-term investments to meet council tax costs.
The benchmark figure, currently set at £16,000, should be elevated in line with inflation since 1991, the LGA proposes.
Councils are also recommended as being given greater assistance to allow them to make the most of the funds at their disposal.
This could include a refund of money spent on recycling schemes, helping authorities across the country to tackle climate change.
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