Published On: Wed, Jun 16th, 2021

Council tax: Northern cities & poorest households hit by biggest costs – London bills drop | Personal Finance | Finance

Council tax is an annual fee local authorities charge to cover certain services such as rubbish collection and libraries. Usually, the cost is spread out over 10 monthly instalments, followed by two months of not making any payments.

Similar research from A-Plan insurance also showed how costly council tax bills can be for families, specifically for those in less affluent areas.

In analysing ONS data, the company detailed the average person in England needs to earn 20 days’ worth of wages to cover the cost of their council tax bill, while in some areas the average employee would need to work for a full month to pay the bill.

It pointed out workers in Pendle, Lancashire are the worst hit, and need 29 days of wages to cover council tax bills.

On the flipside of this, London boroughs combine the highest wages and lowest council tax rates, with the average City of London worker being able to cover their bill with just six days of salary.

London offered the UK’s highest average wage paired with some of England’s lowest council tax payments.

City of London workers receive a gross average of £57,361.20 per annum, of which only two percent is required to cover the council tax bill of £1,217, equivalent to just six days of work.

Westminster workers also receive a gross average wage of £43,596.80, along with the lowest council tax bills in the country, averaging just £945, so also need only six days’ salary to cover the cost.

An A-Plan Insurance spokesperson commented on these findings: “The discrepancies here show that for some people the council tax bill is a figure that looms large in their finances, while for others it’s a much smaller issue.

“Some areas benefit from high average wages and low council tax rates, while others have the reverse to contend with.”

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