News story

3rd December 2004

West MP Condemns Cut in Help for Pensioner Council Tax Bills
 

Northavon MP Steve Webb has condemned this week's announcement by the Chancellor that pensioners are to get less help with their council tax bills next year. In 2004/05, pensioners aged 70 or over currently get a Winter lump sum of 300 pounds, made up of 200 pounds in winter fuel payment and 100 pounds towards council tax bills. In his pre-Budget statement to MPs on Thursday (2nd December) the Chancellor said that the over 70s will only get 250 - a cut of 50. This is despite announcing that  he expects council tax bills to rise by more than the rate of inflation next year.

Steve Webb, who speaks in Parliament on pensions issues, has condemned the Chancellor for cutting support to pensioners. He said:

"The winter before an election, the Government gives extra help to pensioners. The winter afterwards, that help is cut. It is not surprising that so many pensioners have lost faith in the government.

"The Council Tax is an unfair tax which already hits retired people hard, especially if they have modest amounts of savings or private pensions of  their own. If the Government is going to cut help with council tax bills, this is another reason why the Council Tax should be scrapped altogether and replaced with a fair local tax related to ability to pay".