Crucial tax benefit for pensioners; Cash point.

Byline: TRICIA PHILLIPS 

UP to 2.2 million pensioners are struggling with council tax bills unnecessarily.

They could be saving an average pounds 580 per year by claiming council tax benefit - the most unclaimed allowance of all.

Just 45 per cent of older people take advantage of it as most are unaware it exists or do not know they qualify.

Age Concern and Help the Aged want it to be paid automatically, rather than people having to claim, to ensure pensioners get what they are entitled to.

Council tax bills are set to rise by three per cent this year and despite what may seem a generous increase to the state pension, the real rate of inflation for pensioners remains high and the fear is many will struggle to make ends meet.

Michelle Mitchell, of Age Concern and Help the Aged, says: "Pensioners on low fixed incomes will be worried about how they will afford even a modest rise in council tax this year. This unfair charge, which is worked out on the size of a property rather than household income, can financially cripple older people who can be asset rich but cash poor."

Around pounds 1.4billion worth of unclaimed council tax benefit goes begging each year. Those on pension credit guaranteed credit (with or without savings credit) qualify. You can claim pension credit and council tax benefit by calling 0800 99 1234.

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STRUGGLE Ms Mitchell