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MPs call for council tax relief

07/08/2007

The government should help those suffering in poverty by ending council tax benefit, a committee of MPs says.

Rather than scrapping the measure it should be reintegrated into the national taxation system, today's report claims.

At present people only receive the relief if they apply for it, leaving the government with £1.8 billion from unclaimed benefits.

Eligibility and entitlement are also too restrictive under current rules, the MPs say, prompting their call to the government to drop the 'benefit' label "immediately".

"The restrictive nature of the rules governing council tax benefit eligibility results in a situation where an estimated 600,000 children are below the poverty line in households which are not eligible for any council tax benefit," the report notes.

"We call on the government to take action as matter of urgency to address the restrictive nature of the rules governing council tax benefit as well as to increase take-up among all eligible low-income households."

A spokesperson for the Department for Work and Pensions, which administers the benefit, said the existing scheme helps over five million people on low incomes.

"It's really important that people claim any money they are entitled to. We will continue to work with local authorities to alert people to their entitlement and make the claim process as simple as possible," he said.


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