Council Tax Hitting The Vulnerable With Three Million Poor Families Paying Too Much

2.13.30am GMT Mon 17th Mar 2008

Thurrock Liberal Democrats are renewing their campaign calling for council tax to be scrapped council and replaced with a tax based on a person's ability to pay, to avoid the need for complex means-tested benefits like Council Tax Benefit (CTB).

According to new figures obtained by the Liberal Democrats as many as three million families living in poverty are missing out on an average payment of £700 to help pay for rocketing council tax bills.

Despite the average council tax bill having almost doubled since Labour came to power, six out of ten families living in poverty are still paying the full rate of council tax by not claiming CTB.

The Liberal Democrats have called for council tax to be scrapped.

Liberal Democrat research also shows:

· Last year average council tax rose 4.3%, above both inflation (2.1%) and earnings (3.8%), and councils are expected to announce further inflation-busting rises in the coming months.

· The average council tax bill for England is £1,321

· The average payment of council tax benefit (CTB) was £14.10 a week. So each of the 3 million households are missing out on an average of over £700 a year. As much as £1.9bn of CTB is left unclaimed every year.

· The numbers of people taking-up council tax benefit has fallen by at least 12% between 1997-98 and 2005-06.

Commenting, Liberal Democrat Shadow Work and Pensions Secretary, Danny Alexander said:

"Council tax is hitting those in poverty disproportionately hard, making life incredibly difficult for millions of hard-working poor families and especially their children.

"Council tax should be scrapped and replaced with a fair local income tax, so that people pay what they can afford. Families in poverty should not be subsidising local services for everyone else."

Peter Saunders, Chair of Thurrock Liberal Democrats said, "Council tax is a regressive tax and is not based on ability to pay."

"It is unfair, unjust and as a Liberal Democrat I am totally opposed to unfairness in our society."

"Many residents in Thurrock on low and fixed incomes, like pensioners, would be benefit from a change to a Local Income Tax because they would be exempt."