Council Tax increases but services threatened
01/02/2007
New figures from The Local Government Association (LGA) show an average increase of 3.5 per cent in Council Tax for the year 2007/2008 - less than expected. But as a result, many councils now warn that up to 370,000 older people could pay the price in reduced services.
Although this is the lowest rise in Council Tax since it was introduced in 1992, councils claim that an aging population and resultant increase in care needs and NHS provision means that 7 out of 10 councils can only afford to fund those with the most critical needs.
Anna Pearson, Senior Policy Officer at Help the Aged, said: "'While these projected figures for Council Tax are lower than last year's horrendous increases, this will be cold comfort for many pensioners when set against continuing inflation-busting rises in other bills and costs.
"Council Tax continues to cause real hardship among older people. Our own research shows that a third of people on the very lowest incomes are now spending more than 10 per cent of their household expenditure on Town Hall bills. This position is not sustainable while the Basic State Pension and most means-tested benefits continue to rise only in line with official inflation rates."
The issue yet again raises the whole question of how to fund the care needs of an ageing population, especially in areas such as basic home help, which can prevent trips and falls that result in more expensive hospital treatment.
Anna Pearson added: "Local councils and the Government must do more to ensure that older people claim Council Tax Benefit. Around £2 billion worth lies unclaimed each and every year - but many local authorities still fail to properly promote that it is available. "
Local Government Minister Phil Woolas has warned the Government will not hesitate to use powers to "cap" any authorities which propose "excessive" increases - which means the services which older people rely on - such as care and home help services are likely to suffer.
Chairman of the LGA, Lord Bruce Lockhart, pointed out that it is the council tax payer that has funded the governments much vaunted “unprecedented increase in spending”, such as allocating an additional £350 million to local authorities in 2006 to 2007 to fund the move to free concessionary bus travel.
But although the free bus pass has been welcomed, it hasn't been funded, so becoming yet another pressure on the council tax bill which, ironically, many retired people cannot afford to pay.
The proposed 3.5% rise is half a point above inflation by the Government's official Consumer Prices Index measure, which recently rose to 3%. However it is below the Retail Prices Index (RPI) rate, often thought to be more representative of the cost of living as it includes housing, which stands at 4.4%.
Lord Bruce-Lockhart added: "Councils want to provide the services they need, but are increasingly unable to do so because central government funding has not kept pace with the demands of an ageing population. This is not a situation that older people deserve or indeed expect.
"Unless the Government takes action, older people who do not have critical care may not receive basic care to help them stay at home by April 2009."
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