Poor families still being hit for tax
15.06.05

leading children’s charity calls for action following hard-hitting report

The Child Poverty Action Group has today given its backing to a report, which calls for an overhaul of Council Tax Benefit (CTB).

Making it fair – council tax benefit and working households has been published by the Local Government Information Unit in partnership with leading groups such as the New Policy Institute, Unison and the IRRV. The report shows that while council tax benefit is very important to low-income families it is also badly flawed.

Evidence produced from the LGIU shows that two thirds of children living in poverty in the UK live in households that receive either no CTB or partial CTB only.

'Today’s report shockingly reveals that families below the poverty line are still being hit for Council Tax,' said CPAG Chief Executive Kate Green OBE.

'Reform of the CTB could have a major impact on meeting Government targets to reduce child poverty and worklessness.

'This report shows that CTB creates disincentives to work for low income households who are hit by council tax payments before they can get the boost from the Working Tax Credit. The system suffers from anomalies and inconsistencies and must be addressed,' she said.

Making it fair – council tax benefit and working households makes the case for three basic reforms to the system which include making CTB more generous for working age households, ensuring the system is aligned to income tax and tax credits, and making the claiming of CTB easier.

For further comment or a copy of the report:
Ashley Riley
Press Officer
Tel. 020 7812 5216
Mobile 07811 324339
Email ariley@cpag.org.uk