Retired Couples in the East of England have been hardest hit by these increases as they watched their council tax rise by 104 per cent from £604 (1996/07) to £1,232 (2005/06). This was followed by the South East which saw a 102 per cent increase and the South West with 99 per cent. Overall, the North West saw the lowest ten-year rise (+66 per cent). This is likely to be as a result of having the most expensive council tax in 1996/97.
While council tax affects all consumers, these increases have hit retirees on fixed incomes particularly hard and now account for 6 per cent of the income of each pensioner couple (1995/06 - 4 per cent). The increases in council tax over the last ten years have also significantly outstripped inflation over this period (+29 per cent) as well as the increase in the average pensioner income (+27 per cent). This has caused increasing frustration amongst this age group and 86 per cent choose council tax as the expense they most resent spending their retirement income on.
Dean Mirfin, business development director at Key Retirement Solutions, commented: "The average council tax in England has soared by 96 per cent over the last ten years. This is a huge increase and a real frustration to many people who don't feel that they are seeing 'value for money' when it comes to their council tax bills. Pensioners - on fixed incomes - are especially angry about having to pay this tax and 86 per cent say that it is the expense they most resent spending their retirement income on.
"With the state increasingly putting the onus on individuals to make sufficient provision for their retirement, this research really highlights the importance of saving for this goal. The government is unlikely to intervene to reduce this tax and if it continues to increase at approximately 96 per cent every ten years, pensioners who haven't made sufficient provision are likely to face a bleak future."
