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| Version 2 | Version 3 |
|---|---|
| Council tax single person discount 'should be reviewed' | Council tax single person discount 'should be reviewed' |
| (about 4 hours later) | |
| Wealthy people living alone in large homes should lose their council tax discount to fund more help for poorer families, local authorities have said. | |
| Households with just one adult get a 25% discount on council tax at present. | Households with just one adult get a 25% discount on council tax at present. |
| The Local Government Association said councils should receive the £200m they currently lose from homes in England rated at band E or above where only one person pays the tax. | |
| The government said it had "no plans" to change the current system. | The government said it had "no plans" to change the current system. |
| 'Wealthy bachelor' | 'Wealthy bachelor' |
| Peter Fleming, chairman of the Local Government Association (LGA) improvement board, said removing the discount would "protect discounts for struggling families and those who need it most". | Peter Fleming, chairman of the Local Government Association (LGA) improvement board, said removing the discount would "protect discounts for struggling families and those who need it most". |
| Before April 2013, there was a national council tax benefit available but since that date people on a low income or claiming benefits must instead apply to their council to ask if they are eligible for a council tax reduction. | Before April 2013, there was a national council tax benefit available but since that date people on a low income or claiming benefits must instead apply to their council to ask if they are eligible for a council tax reduction. |
| But the LGA argues that the shift in responsibility from national to local government was accompanied by a 10% reduction - equivalent to £410m - in government funding for council tax support. | But the LGA argues that the shift in responsibility from national to local government was accompanied by a 10% reduction - equivalent to £410m - in government funding for council tax support. |
| Mr Fleming said: "It is difficult to justify why discounts for wealthy professionals living in large homes are protected while nearby there are low-income families struggling to make ends meet who are having their discounts cut. | Mr Fleming said: "It is difficult to justify why discounts for wealthy professionals living in large homes are protected while nearby there are low-income families struggling to make ends meet who are having their discounts cut. |
| "This 'wealthy bachelor' discount currently costs councils £200m per year in lost council tax revenue and is subsidising individuals occupying large homes at a time when there is a dire shortage of housing." | "This 'wealthy bachelor' discount currently costs councils £200m per year in lost council tax revenue and is subsidising individuals occupying large homes at a time when there is a dire shortage of housing." |
| Poll tax | Poll tax |
| But Local Government Minister Brandon Lewis said ending the discount would amount to "a Bridget Jones Tax" - that would unfairly hit those who live alone. | But Local Government Minister Brandon Lewis said ending the discount would amount to "a Bridget Jones Tax" - that would unfairly hit those who live alone. |
| At present, it is not just adults living alone who qualify for the 25% discount. | At present, it is not just adults living alone who qualify for the 25% discount. |
| Because there are many groups of people who do not qualify as council tax payers - including children under 18, people on apprentice schemes, full-time students, people with a severe mental disability and live-in carers among others - any household which includes one paying adult among them would be subject to a discount. | Because there are many groups of people who do not qualify as council tax payers - including children under 18, people on apprentice schemes, full-time students, people with a severe mental disability and live-in carers among others - any household which includes one paying adult among them would be subject to a discount. |
| The council tax replaced the poll tax - which was largely based on a per-person charge - in 1993. | The council tax replaced the poll tax - which was largely based on a per-person charge - in 1993. |
| The proposals by the LGA, which represents councils in England and Wales, have been outlined to the Treasury ahead of this year's budget. | The proposals by the LGA, which represents councils in England and Wales, have been outlined to the Treasury ahead of this year's budget. |