Pensioners will be hit hardest by hike in Council Tax bills

Pensioners will not be able to cope with Council Tax bills when they rise again next year, says Key Retirement Solutions.

The rise will mean Council Tax will have virtually doubled since Labour came to power nine years ago, and will cost home owners at least an extra 100 per year.

There have already been a number of high profile protests at the increase in Council Tax this year, with two pensioners refusing to pay the above inflation rises in their bills and subsequently being jailed.

Dean Mirfin, business director at Key Retirement Solutions, says: “If you look at the retirement sector, typically a 10th of annual earnings goes on Council Tax. For people who are working it’s nowhere near that. This is a major concern.

“You don’t hear many stories about 30 year olds getting arrested for not paying their Council Tax.

“But there is a big difference between those who don’t want to pay and those who are struggling.”

Mirfin adds: “These increases being higher than inflation makes it even tougher on retired people. Typically they rely on the state pension.

“Some may have savings or occupational or personal pensions, but the increases they get in these do not cover increased living costs.

“With such a huge gap to bridge, we’ll certainly be hearing more stories of pensioners arrested for not being able to pay.”

The Council Tax increase was forecast by town hall chiefs last week and prompted a storm of criticism.