
FAMILIES across the North East will face bailiffs and even prison if Eric Pickles goes ahead with a cut in council tax support, it was last night claimed.
In a joint submission to the Government, North East councils have warned plans to cut council tax benefits by 10% will hit low-income families in the region hard.
Ministers say they want to hand councils control over benefits, while at the same time reducing the amount available by 10% to prevent “spiralling” benefits claims.
But council bosses have warned rising unemployment – currently at 12% in the North East – will mean more and more families calling on councils for discounts in their local tax bills.
Ever-diminishing council funds will make it impossible to help everyone, city leaders have said.
A joint warning from the 12 councils in the Association of North East Councils said: “These changes could lead to more council tax payers being taken to court and increased use of bailiffs.
“This in turn would create additional costs in the short term relating to prison sentences, and in the long term with regard to the social costs of rehabilitating people back into mainstream society.”
Last night Paul Watson, chair of the association, said: “It is difficult to see how schemes could be developed to allow a reduction in council tax support in excess of the 10% reduction that is being proposed by the Government.
“Due to the current and future job cuts in this area of the country it is unlikely that benefit caseload will decrease.”
A 10% Government cut is the same as taking £27m a year from regional benefit help. The Association says this extra bill will inevitably be passed on to working age claimants, many of who are already in arrears. The Government originally told councils it wanted to save £500m from the benefit budget. It later told local authorities pensioners would not be included in the changes, but kept the cash target the same.
As nearly half the claimants in the region are pensioners the end result is greater pressure on families and the unemployed.
In Newcastle, city leaders have been warned the options facing them are either further cuts to already under pressure services or a council tax increase to cover the £2.7m a year cut.





