Hanson reassures Age Concern on rates - 03 October 2006
Hanson reassures 'Age Concern' on rates
Finance Minister, David Hanson MP, has sought to alleviate the concerns of older people and those on low incomes, about the new capital value rating system being introduced next April.
In particular he has drawn attention to the reliefs that will be available to those on low incomes and those living in properties where the value has risen dramatically over the years.
Addressing the Age Concern Volunteer of the Year Awards in Cookstown today, he said:
“I know that Age Concern is worried about the reforms to the rating system and also the introduction of water charges and the impact this may have on older people, particularly those who are not entitled to rate rebate through the housing benefit system and the automatic entitlement this will give to a greatly reduced tariff for water.
“The rating reforms include a low income rate relief which effectively extends the income limits that apply under housing benefit, so that more people will be entitled, or those who only get partial relief will be entitled to more.
“There has been much concern voiced in the media recently about the pensioner who stays on in the family home which may have been bought many years ago for a fraction of its current value – the so-called ‘asset rich income poor’ who live in the most expensive houses. This relief scheme will be of benefit to many in this category.
“Take for example the pensioner couple living in a house worth £500,000, with a combined state and occupational pension of £21,000 and savings of £15,000. They would be entitled to both housing benefit and rate relief under the new system, getting help with just over half of their rates bill. Were they only in receipt of the state pension they would get their full rates paid.”
Mr Hanson pointed out that these two schemes will be of particular help to those on low incomes in high value property, traditionally pensioners in a family home that has increased in value in recent years and about whom particular concern has been expressed.
And he also had a message about measures which will be available with the advent of water charging next year:
“Pensioners who are not entitled to the reduced water tariff will have the right to have a meter installed and the cost of this installation will not be borne directly by the customer.
“All of these measures are intended to mitigate the impact of the reforms and are additional to the transitional measures that the Government has decided for both rates and water charging,”
he added.
