Elderly could receive council tax discount (From Gazette & Herald)

Elderly could receive council tax discount

A DISCOUNT on council tax for the elderly is being considered by North Yorkshire County Council.

The break for some pensioners is being discussed ahead of the new Local Government Act 2003, which will allow local authorities to give tax discounts to certain groups of the community.

Kent County Council has already proposed what amounts to a council tax discount for pensioners.

North Yorkshire County Council leader Coun John Weighell said: "We have been aware for more than two years that the section of the community who have suffered the most from the high rises in council tax have been those on fixed income, people who had seen pension rises of as little as 2pc, while other members of society have seen incomes rise and mortgage rates improve."

Members of the county council's executive have already received a special report on the issue. They say that any scheme would need to be carefully targeted, and have, therefore, asked officers for a further report.

Coun Weighell added: "We will be consulting with the precepting bodies - the police, fire and the seven districts. The council tax will be set around the end of February to the beginning of March, so we will make our decision by then, but we have to take into account changes in Government policy too. The idea has got a long time to run and we don't have any answers as yet but we are always interested in what people think."

There are many obstacles that must first be overcome.

For example, since some councillors are of a pensionable age and others have parents who receive pensions, in a debate they would have to declare an interest. A dispensation from the Secretary of State would have to be sought just to have a formal debate on the issue.

District councils need to be consulted because they collect the tax. How will the criteria for a discount be checked? Would more staff be required to administer the system - and would such extra costs negatively offset the programme?

Coun Jim Clark, the county council's executive member for finance, said: "There are pros and cons to any scheme. If some pensioners received a discount then other people might have to pay more.

"There are also large administrative challenges, not least for the district councils who collect the council tax. The success of any scheme will depend on their co-operation, and so I am keen to enter into a dialogue with them as soon as possible."

One organisation with reservations about the suggested scheme is Help the Aged, which welcomes help for pensioners, but sees the way forward as a more means-tested approach.

Regan Cooper, of Help the Aged, said: "We think it's an interesting suggestion and is one of many ideas being put forward at the moment. However, Help the Aged is looking for much wider-ranging reform of council tax and council tax benefit and we'd prefer to see a future system that reflects an individual's ability to pay.

"The fear is that we tend to class older people in the same way when, in reality, there is a diversity in wealth among pensioners. It's the people on lower incomes for whom the tax is a big percentage of their income."

Brian Cottam, chairman of Ryedale District Council, who also chairs the Better Government for Older People North Yorkshire committee, welcomes the idea of a reduced rate for pensioners but is unsure of how it would work in practice.

"I'm all in favour of some scheme to give pensioners benefits, but as a councillor I see that the problem arises when you give away to one group of people with one hand, you have to ask for more from another, because the Government isn't simply going to give you more money."

Pensioners in Malton and Norton were very much in favour of the idea. One woman told the Gazette & Herald: "Council tax can feel like another mortgage round your neck, it is a lot of money. Although I must say we've had a little bit of a discount already since my husband and I retired. It would be lovely if we got a bit more though."

The county council has the fourth lowest council tax of all England's shire counties and its 11.5pc increase for this year was below the national average of 12.9pc.

An information day on the Pension Credit scheme is to be held on Saturday at Community House in Wentworth Street, Malton.

The event, to be opened by the town mayor, will run from 10am to 4pm. Local organisations will be on hand to offer help and advice.

The Pension Service staff will be pleased to talk about the new Pension Credit, which was introduced on October 6. A prize draw will be available to people who attend the event.

Updated: 10:41 Wednesday, October 08, 2003