Latest Debt News
Millions pay too much council tax
19/12/2005 12:09:00
Millions of households will continue paying too much tax, following the postponement of the council tax re-evaluation.
Sir Michael Lyons, who is conducting a review of the council tax system, warns that some four million households will continue to pay over the odds.
However, opponents of the re-evaluation say that millions more would be charged higher council tax if the planned changes had gone ahead.
It is estimated that although 3.7 million people would have dropped a band following re-evaluation, a further four million would have jumped up one and 300,000 would have climbed at least two.
The government has accordingly delayed re-evaluation indefinitely as it seeks to discover whether a fairer system of local taxation is possible.
Recent findings show that unexpectedly high bills can have an adverse affect on cash-strapped households, with many people entering into debt following unexpected living costs.
Research by the online bank egg found that UK households underestimate the cost of bills by up to 30 per cent, creating a £94 million "hole" in collective budgets, with many households resorting to personal loans to bridge the shortfall.
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