News story

16th October 2003

Council Tax Rise will Leave Pensioners with 15p

Pensioners will be left with a miserly 15p increase in their pension thanks to the Government’s steady rises in Council Tax, Steve Webb MP, Liberal Democrat Work and Pensions Secretary, said today.

The Government’s announcement that inflation in the last 12 months stood at 2.8 % means that pensions are set to rise by £2.20 per week from next April. New calculations by the Liberal Democrats show that if Council Tax rates rise by the same amount next year as they did this year, a typical pensioner could be left with just 15p out of this pension rise once they have paid their council tax bill.

Steve Webb MP said:

“We thought that Gordon Brown’s 75p pension rise was mean. But next year, pensioners could have just 15p a week to spend if council tax rises continue at their present rate.

“Pensioners are being treated as second class citizens whose pension increase won’t even buy a second class stamp.

“This is the clearest evidence yet that the Council Tax is hitting vulnerable people hardest and should be scrapped”.