22/02/05 - Conservatives Will Slash Council Tax For Pensioners In Swindon

Conservatives will slash council tax bills for pensioners in Swindon 

Cllr Justin Tomlinson the Conservative candidates for North Swindon this week launched the new Conservative policy to offer a Council Tax discount of up to 50 percent to households where pensioners are over the age of 65.

Addressing the needs of those hit hardest by soaring council tax, the policy will slash hundreds of pounds off bills in households of people aged 65 or over, subject to a maximum of £500.

Council taxes in Swindon have risen by x percent since 1997 for the average Band D household and now average £1131 per year.  Under Conservative proposals, a single person over 65 will receive a £447 discount and a couple will receive up to £500 discount.

The new policy has been launched this week with the Conservative Manifesto for Older People. The key manifesto pledges for older people include:

Lower council taxes. Pensioners have been among the hardest hit by Labour’s rises in council tax, so we will cut council tax bills by up to 50 percent. This will be worth up to £500 for households made up of adults aged 65 and over. It will help five million pensioners.

A bigger pension. Increasing the basic state pension in line with earnings will mean that after four years, a single person’s pension will be worth £7 a week more, and a couple’s £11 more – over and above increases made in line with price inflation.

Reversing the spread of means testing. Pensioners who no longer rely on the means-tested Pension Credit will see their savings freed from government scrutiny. More pensioners will escape these demeaning tests because all will receive a higher income through a higher state pension, as of right.

Long-term care. Many pensioners face an invidious choice between living in their own home without adequate care, and selling their home to pay for care. Under a Conservative Government, no one will be forced to sell their home to finance their long-term care. Rather than shifting the long-term care burden on to the individual by stealth as Labour is doing, we will cap long-term care costs.

No one will lose out. We will not abolish Pension Credit and we will keep special payments for pensioners such as Winter Fuel Payment and free TV licences for the over-75s.

Cllr Justin Tomlinson said, “I believe that people deserve to be treated with dignity and respect in their retirement.  But in Swindon today too many pensioners are not shown the respect they deserve or given the dignity that is their due.

“Pensioners have seen increases in their state pension eaten up by the most punishing of all Mr Blair’s stealth taxes – the Council Tax. 

“The older generation don’t seem to feature in Tony Blair’s New Britain. New Labour’s Britain is a country where the older generation has been air-brushed out.

“Conservatives will give every home where the adults are 65 and over a 50 percent Council Tax discount up to a maximum of £500 and increase the basic state pension in line with earnings – making pensioners up to £11 a week better off after four years.

“People will face a clear choice at the election: Conservatives who will give pensioners dignity, security and respect by increasing the state pension and cutting their Council Tax or Mr Blair, who will forget them and raise their Council Tax.”

HOW THE DISCOUNT WILL WORK

 A 50% discount will be applied to net council tax bills for the over-65s. Pensioners over 65 will self-certify on their council tax form, in the same manner as a single-person household would register for the single person’s discount. No group will be penalised with higher council tax bills in order to finance the discount.

The discount will apply to pensioners over 65. European Union directives prevent age discrimination in the application of new benefits. From 2010, the pension age is also to be harmonised at 65. Older pensioners also tend to be on lower incomes.

The tax cut will benefit households where one or more occupants is over 65, but where no adult is under 65. The presence of people under 18 will not count against the eligibility of the household for the discount. The discount will be on top of any existing discounts, e.g. the single person’s discount or the disabled person’s discount, and be applied to the current net bill.

Council tax benefit recipients who currently pay some council tax will also receive a 50% reduction off their current net bill.

The tax cut will be fully funded by a Conservative government out of the £4 billion available for tax cuts in our first Budget. Local authorities will be fully compensated by central government for the cost of the discount in the ensuing Local Government Finance Settlement.

Since primary legislation is required, the measure would form part of Conservatives’ Local Government & Housing Bill within the first year of a Conservative administration. The first council tax bills set under a Conservative administration will have the discount applied (April 2006, assuming a May 2005 general election).

The discount will not be means-tested, as this would create extra bureaucracy as well as discourage saving. However, to make the tax cut affordable, and to focus it on the most vulnerable savers, a maximum discount will be set at £500. The policy initially applies to England, as local government finance is devolved.