Keir Starmer could target 4m pensioners in council tax raid by removing single person discount

During yesterday's Prime Minister's Questions, Starmer refused to rule out changes to the 25 per cent reduction on council tax for single people but pledged to retain free bus passes, NHS prescriptions and TV licences for pensioners.

Starmer was asked by Louie French, a Conservative backbencher, if ministers would scrap a council tax discount for those who live alone or free travel for older people.

He said: “I am not going to pre-empt the budget. It will all be set out in due course.”

The potential removal of the council tax discount could impact an estimated four million pensioners living alone.

Around 8.4 million homes in England are entitled to single persons discount relief, with half of the beneficiaries aged over 65, ONS figures show.

With the average Band D council tax bill in England standing at £2,130, the loss of this discount would be a substantial hit to many elderly individuals living on fixed incomes.

The discount can save households up to £543 per year on a Band D property, or even more for higher-banded homes.

With Labour claiming there is a £22billion hole in the public finances, many people are anxiously awaiting the Autumn Budget to see how the Government plans on raising these funds.

Angela Rayner, the Housing Secretary, has also previously refused to rule out scrapping the discount.

On Wednesday, Reeves fuelled speculation when she hinted the Budget could include further cuts to benefits.

She said: “I have been really clear that the Budget on October 30 will require difficult decisions on tax, on spending and on welfare.”

Pensioner groups have warned that removing the discount would be an "unforgivable betrayal" of older people. There are fears it could even lead to some losing their homes.

The potential scrapping of the single-person council tax discount has raised significant financial concerns. Local authorities argue that abolishing the discount could raise up to £3billion annually, helping to shore up their finances. However, this move could have severe consequences for pensioners.

Pete Marland of the Local Government Association highlighted the funding crisis faced by councils, stating: "Councils face a funding gap of more than £6billion over the next two years just to keep services as they are with no further cuts.

"We need a significant change in our funding to stabilise local government finance so we can deliver the services local people want to see.”

The fears over the scrapping of council tax discounts follows growing controversy over Labour's decision to means-test Winter Fuel Payments. This will affect around 10 million pensioners but save around £1.5 billion this year.

Starmer blamed the Conservatives for the decision and urged Rishi Sunak to “apologise for the £22billion black hole” that ministers say the Conservatives left in the public finances.

He defended his decision and said: “We’re taking this decision to stabilise the economy, that means we can commit to the triple lock, by committing to the triple lock we can make sure that payments of state pension are higher, and therefore there’s more money in the pocket of pensioners, notwithstanding the tough action that we need to take.”

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A spokesman for the Ministry of Housing, Communities and Local Government said: “This Government currently has no plans to reform council tax.”

Outside the Commons a Downing Street spokesman, when asked if the Government was committed to free bus passes for pensioners, said: “We are. There are no plans to change that.”

Reeves also told GB News: “We’ve committed to those bus passes, to free TV licences for those entitled, and free prescriptions.”