The highest average annual council tax bills based on a Band D council tax is charged in the North East at £1,884, while retired households in Scotland pay an average of £1,243.
Retired households can pay 51% more on their annual council bill compared to other households depending on where they live, research from equity release adviser Key found.
The highest average annual council tax bills based on a Band D council tax is charged in the North East at £1,884, while retired households in Scotland pay an average of £1,243.
The average council tax bill currently stands at £1,705 a year, a fifth of the state pension of £8,767.
Will Hale, chief executive at Key, said: “Council tax can be a major cost in retirement – especially for the many pensioners who we know are cash poor even if asset rich.
“Just because you live in a nice area doesn’t mean that you can necessarily afford £1,705 out of your annual income with increases resulting in many needing to make cutbacks or prioritise it above other spending.
“While most people simply pay their council tax without complaint, it is easy to understand why they might be frustrated if their neighbour is paying substantially less just because they happen to be in a different post code.”
The total paid by over-65s households in council tax a year is around £11.45bn, around 28% of the total council tax paid this year.
For a couple on the average over-65 income, council tax accounts for 3% of their total income while a single person would spend around 4.6%.
