An online petition calling for Council Tax to be abolished for everyone claiming their State Pension has been rejected by the UK Government. The Department for Levelling Up, Housing and Communities responded to the proposals saying that “the paying of tax is a necessary part of society”.
The petition, created by Brian Hildersley, has received more than 21,300 signatures of support from across the UK and proposes that pensioners should be exempt from paying Council Tax as some older people are spending ‘around 30 per cent’ of their State Pension income on that bill alone.
The official response said: “The paying of tax is a necessary part of society - one that ensures that the state can support the most vulnerable, educate our children, support our health service, and look after those who have worked for a lifetime. Our aspiration as a Government is to keep tax as low as possible - but we do acknowledge its necessity.”
It continued: “Pensions acknowledge the important contribution that older people have made to our country for many decades. At the same time, pensioners still use many of the services provided by local authorities - from bin collection, to highways, to, in some circumstances, adult social care. We believe it reasonable that those who can pay do so for these services, as part of the social contract that binds our society together.”
The Department for Levelling Up, Housing and Communities also highlighted that Council tax support is available for households in financial hardship, and for low income pensioners a discount of up to 100 per cent is available.
The full reduction is provided for all households that receive the ‘Guarantee Credit’ element of Pension Credit - a means-tested benefit that can top-up State Pension payments by an average of £3,500 each year.
The response added: “Since 2010, the Government’s commitment to the Triple Lock has ensured that the State Pension rises annually in line with earnings, prices, or 2.5%, whichever is the highest.
“As a result, the New State Pension is over £10,000 per year, and the Basic State Pension is over £3,000 higher per year than in 2010.”
The April uprating means that those on the full New State Pension will see weekly payments increase from £185.15 to up to £203.85 over the 2023/24 financial year and those on the Basic State Pension will see weekly payments rise from £141.85 to up to £156.20. However, it’s important to remember that how much someone receives depends on their National Insurance contributions.
The ‘Abolish Council Tax for State Pensioners’ petition, will remain open on the official petitions-parliament website until September 22, 2023. If support for the petition reaches 100,000 signatures, it would be considered for debate by MPs.
The petition states: “We want the Government to abolish Council Tax for everyone in receipt of the State Pension. After a lifetime of paying tax, National Insurance is abolished at retirement age.
“We believe Council Tax should also be abolished at retirement.”
It adds: “Some pensioners have to spend around 30% of their State Pension on Council Tax, which can be an enormous outgoing.”
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