The Housing Secretary, Angela Rayner, is facing criticism for potentially abolishing the 25% council tax discount for single occupants, a move that could disproportionately affect pensioners across the UK. Data from the Institute for Fiscal Studies (IFS) shows that this discount currently saves the public purse about £3 billion annually and reduces the average Band D council tax bill by around £543 per year. With half of the 8.4 million affected individuals being retirees, concerns are mounting over the financial strain this change could impose on older people who are already grappling with increasing living costs.
The proposed removal of the single-person council tax discount has drawn sharp reactions from advocacy groups and MPs alike. The National Pensioners Convention's general secretary, Jan Shortt, condemned the potential abolition, stating that it would be an "unforgivable betrayal" of older people, forcing some to face the possibility of giving up their homes. This sentiment was echoed by Conservative MP Graham Stuart, who emphasized the impact on pensioners losing both their winter fuel payments and council tax discounts, emphasizing the financial burden this could place on those least able to afford it.
While Angela Rayner has stated that there are no immediate plans to raise council tax rates, she has not definitively committed to retaining the single occupier discount. This uncertainty has left many pensioners feeling apprehensive about the future outlook of their finances, especially given the additional means-testing of winter fuel payments announced by Chancellor Rachel Reeves. The potential changes have sparked concerns among pensioners, with advocacy groups and MPs highlighting the vulnerability of older individuals facing escalating living costs and fixed household expenses that are not adjusted for single occupants.