Cashback for Non Council Tax Payers Too?

£50 windfall being sent to those on benefits

As Ealing's much heralded £50 cash handout starts to arrive in bank accounts and through the post there is growing disquiet that the money is also being awarded to non-tax payers.

This multi-million pound scheme is the biggest of its kind ever run by a council in England and is timed in the run up to Christmas.

According to the council's own website the money is for 'eligible' council tax payers, but local residents say they are aware that non-council tax payers are getting it too.

Forum member John Jones told Ealing Today:

''I know this is true because a neighbour of mine who is a council tenant, has his rent, council tax, disability allowance paid for and received in the post on Wednesday morning his £50 voucher. I have spoken to the tax office at the town hall and they confirmed every one whether or not they pay council tax will receive the £50.''

Jean Heaphy commented on the ActonW3.com forum:

"People on benefits that don't pay their own council tax get the £50 back. Why? How? Could someone explain this please? If the rebate goes to anyone it should go to the benefits agency. Ealing counsellors please respond"

Matthew Elliott, Chief Executive at the TaxPayers' Alliance said:

"It's a great idea to give a tax rebate, and Ealing council should be proud that they have taken this step. A tax rebate should only be for those who pay tax, however, and taxpayers will be rightly concerned if non-tax payers are also receiving this windfall. Ealing should now do their best to turn this initiative into a much-needed lasting tax cut."

A council spokesperson has now issued this statement: "The cash back payment is designed to help boost the local economy which is why we are also running our Spend Local initiative simultaneously to encourage people to spend money with borough businesses by providing special offers and discounts.

"Nearly all households in Ealing are eligible for the one-off payment. This is not a council tax rebate which is why eligible households get the same amount.

"The council wanted to ensure that we did not exclude households on low incomes including those who get council tax benefit in part or full to help pay their council tax. It is important to remember that this will include pensioners, carers with dependents, disabled people and part-time workers on low incomes."

November 27, 2009