1 March 2004 - Claim Council Tax money we owe you, minister urges pensioners
A national campaign starts today to stop pensioners missing out on an average £426 cut to their council tax bills.
Four out of ten pensioners are missing out on three quarters of a billion pounds in Council Tax Benefit which goes unclaimed. Less than half of home-owning pensioners are claiming the money they should get.
Some pensioners are missing out on 100 per cent refund – tearing up their council tax bills. On top they may be due arrears back to last October – up to an extra five months towards last year’s council tax bill, bringing a possible cash windfall.
Council Tax Benefit Minister Chris Pond said: “Pensioners have worked hard all their lives and contributed to the prosperity of this country.
“My message is – don’t be too proud to claim. You’re entitled to Council Tax Benefit and I want you to get every penny owed.
“Up to 1.7 million pensioners are missing out on a much-needed cash boost. The Government has introduced many initiatives such as Pension Credit, Winter Fuel Payments and free TV licences and I want everyone to benefit from the full package.
“Some pensioners may wrongly believe that because they live in a leafy suburb or a nice house they are not entitled to help. It is crucial that we all – central and local government and voluntary organisations – work together to ensure that everyone realises this money is their right.
“If in doubt, there’s no harm in checking – that’s why when we contact every pensioner in the country about Pension Credit and pensioners contact the Pension Credit Application Line, we will automatically send out Council Tax Benefit claim forms if they haven’t claimed.
“Claiming is easier than ever – we’ve combined the Housing Benefit and Council Tax Benefit claim forms, meaning people don’t give officials the same information twice to qualify for both benefits. And now we’re cutting the claim form for pensioners by a third.
“This year it pays to claim more than ever – more generous rules from the Government last October mean almost two million pensioners will either qualify for more help with their council tax or become entitled for the first time. About 300,000 more pensioner households will get Council Tax Benefit for the first time thanks to Pension Credit.” (See Notes to editors)
Local Government Minister Nick Raynsford said: “At this time of year when Councils are deciding the level of council tax, it is vital that everything possible is done to help all those eligible to claim council tax benefit. I welcome this new campaign from DWP designed to help local authorities improve benefit take-up. I hope that it will result in many more people receiving what is due to them.”
Sir Jeremy Beecham, chair of the Local Government Association, said: “Too much money lies unclaimed in town halls which should be paid out as Council Tax Benefit. Councils and the government want people, especially pensioners – 1.5 million of whom can do so – to claim what is theirs by right.”
The Government will be working closely with local authorities to raise awareness and encourage take-up during the campaign.
Next week regional press will start carrying adverts with the message “Cut your Council Tax” in a campaign that will cover the whole country. Flyers, leaflets and posters have also been sent to 20,000 organisations that deal with older people and all local councils in England, Scotland and Wales, along with a Best Practice take-up guide.
Leaflets will also be available from post offices, doctor’s surgeries and sent out by related phone-lines like the Winter Fuel Payment Helpline.
And if DWP’s Pension Service are making home visits to help with the Pension Credit application, they will help pensioners complete the Council Tax Benefit form at the same time.
Some families on low incomes below pension age are also missing out on Council Tax Benefit – the median average unclaimed is £468 off the annual council tax bill.
Notes for editors
- The current restriction on Council Tax Benefit for those people living in Band F, G or H properties will be removed from this April (next month). This will help large families on benefit, particularly those living in some inner-city areas who need to rent properties in these bands, as well as some pensioner households.
- Local authorities have a statutory duty to promote awareness of Council Tax Benefit.
- Promoting take-up of benefits is part of a set of Performance Standards introduced by the Department for Work and Pensions for local authorities in April 2002. To meet the standard, local councils must have a strategy that involves identifying particular groups where take-up is low. These Standards have been backed up by an additional £200 million investment over three years (03/04 to 05/06) for improvements in the administration of Housing Benefit and Council Tax Benefit. Over £46 million has already been awarded.
- Council Tax Benefit is paid as a rebate on the council tax bill.
- Pension Credit is made up of two parts: the guarantee credit, which is payable from age 60; and the savings credit, which is payable to pensioners age 65 or over who have made modest provision for their retirement. The savings credit is payable either on its own or in addition to the guarantee credit. From 6 October 2003, the applicable amounts (on which Council Tax Benefit is based) were increased by £14.80 per week for all singles and £19.20 for all couples aged 65 and over, based on the maximum savings credit. This ensures that no one loses out as a result of Pension Credit and means that overall almost 2 million stand to gain, or to gain more, Council Tax Benefit.
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