Council tax

[BradleyGas]

My Mum's pension is going up by just over £5.50 per week. As a result she loses a tax credit of £2.80 per week. Net gain, about £130 per year. However, her council tax has rocketed by an additional £690 per year.

This really seems unfair. Has anyone any advice please?

[grasscarp]

She is unlucky to be living where she is. Ours has stayed the same (in fact a couple of quid cheaper than last year).

[cathfromsaron]

boo!

shouldn't she get single occupancy and council tax benefits?

usually the tax credits change just after the benefits change too, so its swings and roundabouts!

[hc4361]

Her council tax has gone up £690? Incredible. Where does she live?

[factor-fiction]

I assume she previously had her council tax paid for her because her income was below a certain figure but following her small recent increase she no longer qualifies for a council tax rebate and now has to pay the going rate which is £690. I'm not sure whether this is how it works.

[factor-fiction]

If that is the case then it's not really unfair- she will be paying the same level of council tax as other people with her income. However it is an example of how state benefits distort decisions about whether it's worthwhile taking a job, working additional hours, drawing a pension, saving money etc.

[BradleyGas]

hc4361 - she lives in Bristol.

factor30 - its an ADDITIONAL £690. My point is that income goes up by £130, clobbered for another £690. How is that fair? She'd have been better off with a pension freeze.

[cathfromsaron]

the limits/boundaries for claims will change also, which was my point!

[hc4361]

You mean everyone who lives in that area is paying an extra £690?

[factor-fiction]

That's what I said, BradleyGas. I said that her income means she no longer gets some or all of her tax paid so she has to pay another £690 for everyone.
So does she now pay the same as anyone else who gets her level of income?

[BradleyGas]

hc4361 - doubt it, just her circumstances.

cathfromsaron - seems she's lost her council tax benefit because of a small increase. However, a net loss of £500 seems so unfair.

Was looking for any thoughts on what she can do - if anything.

[BradleyGas]

Going out now, so won't be able to respond till later. Any more advice will be gratefully received.

[factor-fiction]

One option is to be grateful she was getting her council tax paid for her previously when others who earned only a few pounds more were having to pay the full whack.

She should check that the system does work in this way. She could also explore whether she could sacrifice some of her pension increase -or perhaps see whether some could be disregarded if she pays maybe £5pw into a private pension.

But as I said earlier, it's an example of how the benefits system distorts decisions about work and saving and discourages some people from helping themselves.

[starone]

I live in Bristol. I live alone so pay the single persons council tax. I have been paying £91 per month spread over 10 months, which, of course, is £910 for the year. From April, when it all starts again I shall be paying £92 per month, which is £920 for the year. An increase of £10, not £690. Where do these other figures come from. Unless she was not paying and now has to pay.

[factor-fiction]

That's it Starbuckone- she was getting some or all of her council tax paid for her because of her low income, but now her income exceeds the threshold she has to pay the council tax herself now.

[starone]

Quite a shock to the financial system I would say. However, there may be ways round it. I thought there was some proviso that no-one should get less than they were getting before, or something like that. I have got to pay council tax - and I accept it - I also pay income tax but consider myself fortunate that I do not have to worry about tax credits or such - actually I do not understand them at all. Hope your mother will be able to sort something out or her standard of living will be drastically reduced.

[starone]

P.S. That's BradleyGas's mother, of course, not yours factor.

[factor-fiction]

True, Starbuckone, and it's an example of our flawed benefits system- but she is now only in the same position I would have thought as other people who get the same level of income.
The whole system seems a mess to me.

[ladybirder]

It sounds like we may not have the full story here, or someone is making a mistake. I think Bradley's mum should ask the council to have a look again at her application for HB. On Moneybox on Radio 4 the other day Martin Lewis? said to go to a website called "entitled to" to see if a person is entitled to any benefits. Or this one
http://www.turn2us.org.uk/benefits_search.aspx
Could you do that for your mother Bradley and see if that helps?

[BradleyGas]

Thanks for your comments

[ladyalex]

Have a look here, too.
These people are very good about figuring out benefits.
http://www.ageuk.org....rs/claiming-benefits/