Labour's council tax raid could push 4m pensioners 'over the edge' as bills to rise £543
Currently, the single-person discount provides a 25 percent reduction in council tax
GETTY
The Labour Party have been warned that they risk pushing millions of pensioners "over the edge," if they scrap the single-person council tax discount.
Millions could face an increase to their council tax bill as the Housing Secretary, Angela Rayner, refused to rule out scrapping the 25 per cent single-person discount last week.
Around four million state pensioners living alone in the UK could could be left without the extra financial support as reports suggest their council tax bills may rise by up to £543.
Around 8.4 million homes in England are entitled to single persons discount relief, with half of the beneficiaries aged over 65, ONS figures show.
With the average Band D council tax bill in England standing at £2,130, the loss of this discount would be a substantial hit to many elderly individuals living on fixed incomes. The discount can save households up to £543 per year on a Band D property, or even more for higher-banded homes.
Scrapping the single-person council tax discount would save the public purse around £3bn a year, according to the Institute for Fiscal Studies (IFS), however an expert has warned, the removal of the discount could see pensioners face "severe consequences".
Currently, the single-person discount provides a 25 per cent reduction in council tax for individuals living alone or with a disregarded person such as a student.
The single person discount is particularly crucial for pensioners, many of whom are widows and widowers
GETTYThis discount is particularly crucial for pensioners, many of whom are widows or widowers as "for them, this isn't just a nice-to-have perk – it's a financial lifeline," an expert explained.
Steven Kibbel, a financial planner at Gold IRA Companies, told GB News: "We're talking about an average saving of £543 per year on a Band D property. That might not sound like much to some, but for a pensioner on a fixed income, it can make a significant difference in their quality of life.
"The potential removal of this discount is particularly worrying given the current economic climate. Pensioners are already grappling with rising living costs, and many are concerned about the future of their winter fuel payments."
The removal of this discount could have severe consequences for pensioners.
Kibbel warned: "Adding an extra £543 to their annual expenses could push many over the financial edge.
"Many of these single-occupant pensioner households are occupied by widows or widowers. They've already experienced the emotional trauma of losing a partner – should they now face financial penalisation as well?"
The largest impact would be felt in areas with high numbers of single-person households, such as Cornwall, Somerset and North Yorkshire.
The potential council tax changes come amid broader concerns for pensioners' finances.
Chancellor Rachel Reeves recently announced plans to means-test winter fuel payments, potentially cutting £300 from 10 million older people's budgets. This double blow has sparked outrage among pensioner advocacy groups.
Jan Shortt, general secretary of the National Pensioners Convention called the potential move an "unforgivable betrayal" that could force older people to "give up their homes".
"It will not be forgotten," she added.
Although scrapping the single-person discount could save the public purse £3billion annually, critics argue this saving comes at too high a cost for vulnerable elderly residents.
Labour's refusal to commit to maintaining the single-person discount has raised concerns across the political spectrum.
Graham Stuart, a Tory former minister, urged Ms Rayner to "guarantee today, put gladness into all their hearts across the country," that she would not remove the single person discount.
LATEST DEVELOPMENTS:
Kibbel urged the Government to take into account the vulnerability of certain groups, particularly our seniors.
He said: "Instead of considering scrapping this vital discount, we should be looking at ways to provide more support to those who need it most. As a society, we have a responsibility to ensure that our elderly population can live with dignity and financial security.
"Removing this discount would be a step in the wrong direction. I urge policymakers to consider the real-world impact of such decisions on some of our most vulnerable citizens."
A spokesman for the Housing Department said: “The Government currently has no plans to reform council tax.”
You may like
