Many have been speculating about what Rachel Reeves‘ Autumn Budget will hold, in particular how taxes could be impacted.
Now millions may see their Council Tax bills increase if the 25 percent single person discount is scrapped.
Sir Keir Starmer has refused to rule out the move, sparking concerns for millions – including pensioners who will have already had their winter fuel payment cut.
Scrapping the discount would mean millions who live alone, including pensioners and single parents, could see their Council Tax bill soar next year.
The cut would save the Government around £3bn annually according to estimates from The Institute for Fiscal Studies.
Should the single person Council tax discount be cut? Vote in our poll and have your say in the comments. Can’t see the poll? Click here.
Taxpayers’ Alliance found the average increase for someone in England living in a Band D home would be around £549. This would equate to £515 in Wales and £353 in Scotland.
However, the true cost would vary based on area and experts are concerned of the impact this could have on pensioners.
More than four million pensioners would be impacted if the discount is scrapped, many of whom receive the state pension.
Caroline Abrahams, of Age UK, said: “Many older people are reeling from the news that they are losing their winter fuel payment, so we fervently hope that there are no more nasty surprises to come.”
This comes as Reeves said the Budget on October 30 would need “difficult decisions on tax, spending, and welfare,”.
While Conservative leadership candidate Robert Jenrick accused Sir Keir of waging a “war on pensioners” if he goes ahead with the council tax cut.
He said: “Under Labour, pensioners could be nearly £1,000 a year worse off, which for many is a cost they simply can’t afford.
“Keir’s war on pensioners is putting Labour’s own political interests above any sense of right and wrong.”
Should the single person Council tax discount be cut? Scroll up to vote in our poll and have your say in the comments.
