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38,000 homes to pay council tax for first time as Hull and East Riding deals with Government cuts

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MORE than 38,000 low-income households across East Yorkshire are set to pay council tax for the first time.

Councillors say they have little choice over introducing the new charges in April after the Government's decision to abolish the existing national council tax benefit scheme.

They fear the move, which coincides with a number of other benefits cuts, could ultimately lead to more families being plunged into debt.

They are also worried at the likely increase in the use of bailiffs to recover unpaid tax.

In Hull, 24,800 households will receive council tax bills for the first time.

In the East Riding, about 13,500 will be affected.

Only pensioners currently receiving council tax benefit will remain exempt.

Stephen Foley, 61, of 7th Avenue, north Hull, has been unemployed for five years.

He said: "I get £49 a week in benefits to live on. After paying the gas, water, electricity and TV licence, there's not a lot left.

"I've cancelled my contents insurance and stopped smoking to save money. I spend frugally and never buy anything dearer than chicken.

"It's a miserable existence and I know it's going to get worse."

Mr Foley, who suffers from anxiety and depression, faces a double-whammy next April with a reduction in his housing benefit because he lives on his own in a two-bed council house.

"It just feels that people like me are under attack while these big tax-evading companies get away with a slap on the wrist," he said.

"I know I am going to struggle to pay any extra because I have no other income coming in.

"What is happening to me is that I'm effectively being evicted by proxy."

Under the current scheme, householders pay no council tax at all if they rely on benefits for their income or are working on very low wages.

But because of a 10 per cent cut in the amount of government money available to pay council tax support, already cash-strapped local authorities are having to plug the gap.

With neither Hull City Council or East Riding Council being able to fully finance their respective shortfalls, previously exempt households will be liable to pay part of the ordinary charge levied by the two authorities.

In Hull, most households will face paying £1.50 a week from April, rising to £3.50 in 2014.

The figures in the East Riding are expected to be higher because, unlike Hull, the council has not applied for one-off funding from the Government to cushion the impact of the new charges.

Deputy city council leader Councillor Daren Hale, said: "We take no pleasure in doing this but we really have no choice.

"The Government's decision to cut the funding support to local councils is fundamentally wrong as is a tax on the most hard-pressed in the community."

He said the looming reforms to benefits payments was a "perfect storm" on the horizon.

Councillor Phil Webster, Hull's portfolio holder for finance, said: "This makes a mockery of ministers saying we are in this together."

Caroline Lacey, East Riding Council's corporate director of resources, said: "It is expected that advice services, including the council's own benefit and money advice team, will face significant increases in demand as residents struggle to cope with increased demand on their household incomes."

Councils face challenge to collect tax

38,000 homes to pay council tax for first time as Hull and East Riding deals with Government cuts


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