Retired households pays 51% extra for his or her annual council tax invoice relying on the place they stay within the nation, in accordance with an evaluation from impartial fairness launch adviser Key.
The common council tax invoice presently stands at £1,705 a 12 months, or a fifth of the State Pension of £eight,767.
For a single particular person – even after the 25% council tax low cost – their invoice of £1,279 would eat up 14.5% of the State Pension.
The best common annual council tax payments primarily based on a Band D council tax is charged within the North East at £1,884, whereas retired households in Scotland pay a mean of £1,243, the examine discovered.
There are extra council tax exemptions out there which embrace exemptions for folks with Alzheimer’s, Parkinson’s and dementia.
The whole paid by over-65s households in council tax a 12 months is roughly £11.447bn – round 28% of the whole council tax paid this 12 months.
For a pair on the typical over-65 earnings, council tax accounts for three% of their complete earnings whereas a single particular person would spend round four.6%.
The quantity of council tax varies broadly with Band H properties in Adur and Worthing Council paying round £three,818 a 12 months (14% of common family earnings) and people within the London Borough of Westminster Band A properties paying simply £502. Even in Band H council tax payments are £1,507 and £1,588 respectively.
Common council tax payments in England have elevated this 12 months by four.7%, with the best improve in England and Wales launched by Pembrokeshire County Council at almost 10%. The bottom is in Thurrock at 1.7%, whereas households within the former native authority of Christchurch – which has develop into Bournemouth, Christchurch and Poole – have had a 5.three% reduce. Scottish councils have raised charges by between three% and four.79%.
Will Hale, chief government at Key, mentioned householders who're struggling to fulfill these and different payments are in a comparatively lucky place in that they do have a possible resolution readily available.
Over-65s personal greater than £1trn in unmortgaged property, which may play a task in retirement planning. Out of Key’s purchasers, 11% use their property wealth to fulfill day-to-day prices.
“Good recommendation is essential to creating the suitable alternative to your circumstances,” Hale mentioned.
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