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838,000 low-income households on council tax support excluded from £100 payment
Developing story first seen 1 hour ago
New analysis estimates that 838,000 households claiming Council Tax Support will miss out on the Government’s planned £100 energy payment, despite their low incomes. The findings highlight how targeting support by council tax band may exclude families with greater need as energy bills are forecast to rise.
The payment is due from January to about 20 million households in council tax bands A to D, at a cost of £2.6bn funded by a temporary tax increase on bank profits. Policy in Practice says 84 per cent of those excluded live with a disabled person, have children or are below the poverty line. Government estimates indicate 12 per cent of households in the bottom three income deciles will miss out; EDF forecasts a 27 per cent rise in typical annual bills to £2,189.
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In short
- 838,000 Council Tax Support households are set to miss the £100 payment.
- 84 per cent of those excluded have added signs of financial need.
- EDF forecasts typical annual energy bills will reach £2,189 in January.
How this story developed
- 26 minutes ago The latest account added that councils will receive £100 million for discretionary support, while the January payment remains limited to homes in council tax bands A to D.
- 37 minutes ago An analysis estimated that 838,000 households receiving Council Tax Support would be excluded from the planned £100 energy payment, with most of those affected living with a disabled person, having children or below the poverty line.
Where outlets differ
Left-leaning outlets 1
Only here: income, council, support, excluded, payment
Right-leaning outlets 1
- Labour's '£100 energy bailout for the North' will 'miss out 830,000 of the poorest households'Daily Mail
Only here: labour, energy, bailout, north, miss
Every side used: households
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The case for
A universal £100 payment to households in council tax bands A to D offers a relatively simple way to provide timely help to a large share of households facing higher energy bills. Using property bands can make eligibility easier to administer, while the £100m in local discretionary funds gives councils some scope to assist people whose circumstances are not captured by the main rule.
The case against
Council tax band is an imperfect proxy for ability to pay: people in higher-band homes may have low incomes, disabilities or caring responsibilities, and face the same steep bill rises as other households. Excluding more than 838,000 Council Tax Support claimants, many with signs of significant need, risks directing help away from people who may need it most; more income- or hardship-based eligibility could target support more fairly.
Explained simply
Council Tax Support is a means-tested reduction in council tax for people on low incomes. Council tax bands, by contrast, are based mainly on a home’s value, so they do not show how much money a household has available or how high its energy costs are.
The planned £100 energy payment is intended to help households with bills, with eligibility linked to council tax bands A to D. The Government says the scheme will reach about 20 million households and be funded by a temporary increase in tax on bank profits.
The issue is whether a broad rule based on property band directs help to households facing the greatest financial pressure. Policy in Practice’s analysis points to many excluded households having children, a disabled person or incomes below the poverty line.
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Originally published by The Independent as “More than 800,000 low-income families to miss out on £100 energy payment”.