Around 17,000 Lambeth residents will receive a council tax demand for the first time following the decision of the LibDem/Conservative government to cut support in place to help people to pay their council tax bills. 20,758 Lambeth households will face a reduction in financial support from April 2013.
In the 2010 Spending Review the Government announced that it would ‘localise’ support for individuals paying council tax, and reduce overall spending on this by 10%. In 2013/14 Lambeth will therefore receive £2.6 million less to give out to help people pay their council tax bills.
There are currently 36,000 Lambeth residents in receipt of Council Tax Benefit and Lambeth will be able to continue to help pensioners, many disabled people, war widows and widowers, carers and some families to pay their council tax. However, the Government’s decision will mean that even though the Borough has been able to ensure that Council Tax levels will be frozen for 6 consecutive years, approximately 17,000 residents will soon receive a Council Tax demand for the first time.
There will be reduced financial support through Council Tax Benefits for 20,758 Lambeth households. Lambeth has been writing to all Council Tax Benefit recipients to inform them of the upcoming changes. Lambeth MPs Chuka Umunna, Kate Hoey and Tessa Jowell are all opposed to the decision of the Liberal Democrat/Conservative government to cut Council Tax Benefit funding by 10%.
The cut in support from central government for Lambeth is greater than that faced by over 90% of local authorities. Lord Jenkin of Roding, the architect of the original Poll Tax under Margaret Thatcher, has likened the Liberal Democrat/Conservative Government’s changes to Council Tax Benefit to the Poll Tax.
Commenting, Chuka Umunna MP said:
“When Labour Councillors have worked so hard so that Lambeth will be able to keep council tax frozen for six consecutive years it is an absolute disgrace that Liberal Democrats and Conservatives are using their power in government to raise taxes on our poorest residents and drag so many thousands into paying council tax for the first time – This attack on our community shows that the Liberal Democrats and Conservatives are both heartless and hopeless when it comes to protecting our community.”
“I am deeply concerned about the impact these changes will have on my constituents, for many of whom these charges will be a complete bolt out of the blue – I would urge anyone worried about whether these charges affect them to contact the Council on 020 7926 1000 or view the information provided online.”
Commenting, Tessa Jowell MP said:
“Liberal Democrats and Conservatives in government found the money to give away a £100,000 pound tax cut to those earning millions at the same time as they chose to hike council tax payments for many thousands of Lambeth residents – I and my colleagues in the Labour Party are clear that these funding cuts are a huge mistake and should be reversed.
“I am extremely worried that these charges will be totally unexpected and that people will simply not be able to pay or be pushed into using expensive payday loans to absorb the huge increase to their monthly outgoings.”
Commenting, Kate Hoey MP said:
“Many of my constituents will get a huge shock when they realise they are going to have to find the money for Council tax for the first time this year. Lambeth has been hit really hard by these changes to funding. It is just not a fair allocation of funding from Government and those who can least afford to pay will be the ones who suffer. We will continue to campaign for the Government to reverse the cut and to recognise that Lambeth is being unfairly penalised.”