Express Politics
In a controversial move, up to four million state pensioners living alone may face an average council tax increase of £394 under Labour’s next budget. This comes after Chancellor Rachel Reeves failed to rule out the removal of the 25% council tax discount for single residents.
The single-person discount, which reduces council tax for individuals living alone or with a dependent such as a student, could be scrapped as part of Labour’s efforts to address a £22 billion financial shortfall left by the previous administration. While Labour has promised not to increase National Insurance, VAT, or income tax, the government has remained silent on potential changes to other forms of taxation, including council tax.
The proposal has sparked fear among pensioners, many of whom rely on the 25% discount to manage rising living costs. Currently, the average council tax bill for a Band D property is around £1,578, with the discount saving single occupants approximately £394 annually. Without this reduction, pensioners living alone could see their bills rise significantly.
While some state pensioners qualify for additional council tax reductions based on income, the automatic nature of the single-person discount means that its removal would directly impact a large portion of the elderly population. For many, this discount provides critical financial relief.
Critics argue that removing this discount could disproportionately affect vulnerable pensioners, many of whom are already struggling to cope with the rising cost of living. Prime Minister Keir Starmer has acknowledged that the upcoming budget will bring “painful” decisions, citing the need for long-term fiscal sustainability. However, some have expressed concern that targeting pensioners may exacerbate existing financial hardships among those on fixed incomes.
The potential changes have sparked debate within Parliament, with Labour’s Deputy Prime Minister Angela Rayner defending the government’s approach. She accused the opposition of mismanagement, stating that the new budget is necessary to resolve the economic issues inherited from the previous government.
Labour has emphasized that its focus will be on ensuring fairness, with a particular emphasis on those “with the broadest shoulders” bearing the heaviest financial burden. Starmer also highlighted efforts to crack down on tax loopholes and fines for water companies, as well as plans to increase accountability for non-domiciled individuals, or “non-doms,” as part of Labour’s broader fiscal strategy.
*Conclusion*
With the budget expected on October 31, many pensioners remain anxious about potential council tax changes. As the government grapples with fiscal challenges, the debate over who should shoulder the burden of economic recovery continues, with pensioners potentially at the center of the upcoming financial storm.
