Council tax bills rise 'could push families into poverty'

Jackie Owen says she and her husband struggle to pay the bills - despite both working full-time

Rising council tax bills are contributing to working families being in poverty, a think tank has warned.

The Bevan Foundation said a rise in poverty rates was caused by a mix of "rising living costs, low income and cuts to the welfare system".

April marks the first month people pay higher rates - which rose by an average of 6.5% - with some councils putting their bills up by more than 9%.

The Welsh Government said councils were given "the best settlement possible".

About 720,000 people are estimated to be living in poverty in Wales - more than half are families with at least one adult in work, the Bevan Foundation said.

Poverty is classed by the UK government as someone bringing in less than 60% of the average household income.

Dr Steffan Evans of the Bevan Foundation said: "High costs of living are a significant factor in pushing families into poverty and higher council tax bills are just one part of this problem.

"With incomes not growing at the same rate as living costs over recent years many households across Wales have felt the pinch."

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Councillor Joy Jones said financial pressures could have a negative effect on people's mental health

Jackie Owen runs New Home Furnishings in Newtown, Powys, and said despite both she and her husband working full-time, paying the bills was already difficult.

"Totally horrified - it's 9.5% for Powys alone without the added precepts of town council and police etc, which will push it above 10% and probably closer to 12, and for normal working families it's probably the last straw in many cases," she said.

"Unfortunately wages don't go up anywhere near the amount the council tax has gone up by so we have to cut back - social life has gone, social life went a long time ago actually."

Powys council said it had no choice about its highest-ever council tax hike and it was the lowest possible increase to achieve a balanced budget.

Powys council's anti-poverty champion Joy Jones said: "I think we really could see families tipped over the edge by this and I am extremely concerned.

"In Powys - and I'm sure in other parts of Wales - these large increases are really hitting families and those who are on zero hours contracts, and people on the minimum wage."

When the UK government's poverty statistics were published recently, secretary of state for work and pensions Amber Rudd said 400,000 people had been lifted out of absolute poverty.

But community support worker Adele Evans from Ystradgynlais said: "I'm definitely helping more working families. I think it's because there's a restricted income, bills are going up so more people are feeling the stress and strain of that.

"And that can have a massive impact on the family and their children."