Millions of pensioners living alone could face higher council taxes if Housing Secretary Angela Rayner scraps the 25% discount for singles, potentially increasing financial pressure as they also face missing out on winter fuel payments.
Analysis shows that around half of the 8.4 million people affected by the possible abolition of the single person tax credit are pensioners. According to the Institute for Fiscal Studies (IFS), the rebate currently reduces the average Band D council tax by around £543 per year and saves the government around £3 billion annually.
Angela Rayner, who this week has not ruled out abolishing the discount, has come under fire over the potential impact on the elderly, many of whom are already struggling with the rising cost of living. The announcement follows Chancellor Rachel Reeves’ decision to means-test winter fuel payments, which previously provided up to £300 for around 10 million pensioners, with the aim of saving £1.4 billion for the Treasury.
Jan Shortt, general secretary of the National Pensioners Convention, criticized the potential abolition of the rebate, calling it an “unforgivable betrayal” of older people that could force them to give up their homes. “It seems that older people, who have no voice in parliament, are seen as easy targets,” she said.
Graham Stuart, a Conservative MP, echoed these concerns in the House of Commons, highlighting the pressure on pensioners who will lose both their winter fuel payments and council tax rebates. “That costs hundreds of euros from those who can least afford it. We cannot have such an unnecessary impact on pensioners,” he said.
In his speech in the House of Commons, Rayner assured there were no current plans to increase council tax, but made no commitment to retain the single person tax credit. When pressed on the issue, she responded: “This government wants to make sure working people are better off, and we intend to do that.”
Data from the Ministry of Housing, Communities and Local Government shows that around 8.4 million homes in England benefit from the 25% discount for single residents, while a further 253,000 households are eligible because other residents are left out of the discount. municipal tax. Figures from the Office for National Statistics (ONS) show that half of single people are over 65.
The largest number of single-person households eligible for the rebate are in Birmingham, where 152,000 people benefit from the tax savings. Other top hotspots include retiree-friendly rural areas such as Cornwall, Somerset and North Yorkshire. As Britain’s population ages, the number of people living alone is rising, with the number of single-person households increasing by 8% over the past decade.
Caroline Abrahams, charity director at Age UK, warned that single older people already face significant challenges with fixed household costs that are not decreasing for single residents. She said: “If the singles council tax credit were to be abolished, many pensioners – especially widows – would face financial difficulties, especially if they also lost their winter fuel payment.”
A spokesperson for the Housing Department claimed the government has no current plans to reform council tax, but the potential changes have already raised concerns among pensioners’ advocacy groups and MPs.