Currently talks are underway to reform the council tax laws, which are prompting many low income and jobless homeowners to fear being made to pay full council tax. As reported by the BBC in a recent article online, among the first to have benefits cut would be unemployed homeowners without children.
Experts are warning that some people would lose their benefits totally although government denies this to be the case. Under current law, around four million people have their council tax fully paid by government which is costing some £5bn in funds. If the proposed 10% savings went into effect, experts fear that some people will be cut from benefits altogether.
On the other end, government says that the 10% savings they are looking to realise would be across the board. Each entitlement would be reduced by 10% instead of 10% of people losing benefits. This is according to Grant Shapps, Housing Minister when speaking to a reporter from the BBC.
At the moment, pensioners are protected from having their benefits cut as part of the agreement government made with local authorities when handing over the administration of council tax to them. Therefore, the cut would come out to something like 20% to people of working age and why so many calculator experts feel the jobless will feel the brunt of these changes.
Even though saving money is important, experts warn that taking benefits from the unemployed would have an even more devastating effect on the economy. The case in point is that many believe single unemployed individuals will feel the pressure first even though government is denying any plans to take benefits away from this group. This is according to a statement released by the Department for Communities and Local Government. Talks are still underway so anyone with an interest in council tax benefits should stay apprised to the situation as it develops.
