Halifax has found that council tax bills have risen faster than average in areas with the most pensioners.

Since 1993/94, the average council tax bill per dwelling for all households in the 20 English Local Authorities (LAs) with the highest proportion of pensioners has increased by 149%, compared with a 121% rise in the overall average bill over this period. Chichester recorded the fastest increase, up 173% from £456 to £1,244.

The research found that areas with the most pensioners resident end up paying more on their council tax.

Christchurch in the South West of England is the local authority with the most pensioners – 30% of the population there is aged 65 or above. (source: ONS) The average council tax bill in Christchurch has risen by 171%, one of the fastest rates of increase for areas with a high number of pensioners.

Halifax also found that for households aged 75 and over, council tax accounted for 6% of their total spending in 2003/04 and 5% for those aged between 65 and 74 years old. This compares with only 3% of total spending for people aged younger than fifty years old. (source: ONS)

Of the report, key finding were:
· 18 of the 20 LAs with the highest proportion of pensioners in England have seen rises in their average council tax bill faster than the English average since 1993/94.

· The local authority with the highest proportion of people aged 65 and over is Christchurch – 30% of the population is aged 65 or above.

· 6 of the 20 LAs with the fastest increase in average council tax bills in England since 1993/94 have a high number of pensioners (20% or more).

· 2 of the 5 LAs with the fastest increase in average council tax bills in Wales since 1996/97 have a high number of pensioners – Powys with a 123% increase in council tax and Conwy with a 118% rise. Across Wales the average council tax bill rose by 92% over the period.

Tim Crawford, Group Economist at Halifax said: “Clearly council tax is an important issue for older residents. The tax accounts for a higher proportion of their spending than for younger age groups.

Pensioners’ incomes have not kept pace with the significant growth in the rate of council tax. Since the introduction of the council tax, 18 of the 20 local authorities with the highest proportion of pensioners in England have seen rises in their average council tax bill faster than the average.

The government provides help for many pensioner households to pay council tax through the council tax benefit scheme, which is administered by local authorities. An additional one-off payment is also available for eligible households this year through the DWP.

Unfortunately these are means tested schemes and many pensioners will not benefit from them. Eligible households need to make sure they are claiming these benefits.”