A new report warns 270,000 low income families affected by the ‘Bedroom Tax’ have also been hit by cuts in council tax support (CTS).
A report from the New Policy Institute reveals that 70% of those affected by the Government’s Spare Room Subsidy policy also have to pay more council tax due to cuts in support.
It revealed that cuts to council tax support have affected six times as many people as the Bedroom Tax, and the impact is likely to spread ‘wider and deeper’ as time goes on.
The report stated: ‘Unlike the Bedroom Tax, the number of families affected by CTS cuts is likely to increase each year. Central government has cut direct funding to local councils and capped the amount by which they can raise funds through increasing council tax. But councils can still increase council tax revenue by removing the discount that the poorest families receive (i.e. cutting CTS).
‘While the Bedroom Tax seems likely to be at least scaled back, cuts to CTS are only likely to get broader and deeper.’
It also found that the number of families affected by the Bedroom Tax is likely to fall over time due to changes currently going through parliament to exclude those who have not been offered an affordable housing alternative.