Bosses had 'no choice' but to propose Wolverhampton council tax increase

Bills at more than 12,000 households on benefits in Wolverhampton could soar after the plans were approved to go out for consultation.

Wolverhampton City Council's cabinet approved moves to put the plans out for consultation at a meeting this week.

It follows a Government shake-up of council tax benefits last year, which devolved the power to local authorities to decide how much support to offer.

Until last year, the households affected would have paid nothing at all towards the cost of tax.

But now families on benefits on a band A property could have to pay £220 a year – instead of £120 as it is now.

In April last year the council introduced a charge of 8.5 per cent, which was increased to 12 per cent earlier this year before the proposed 23 per cent charge was put forward.

However finance chief Councillor Andrew Johnson said the local authority had introduced the rise in stages for a reason, believing it to be the most 'equitable' approach.

Councillor Johnson said other councils had brought in the rise in one go.

"We've adopted a different approach to some of the other councils," he added.

"We think it's the most equitable approach.

"We're trying to do it in such a way so that the impact is staged and manageable.

"We've got absolutely no choice in the matter - we're left with no choice whatsoever by the Government."

Councillor Johnson said the local authority wanted to protect certain groups from the rise.

It is proposed that single people aged under 25, or claimants who have a severely disabled partner or child would be protected.

That amounts to 2,200 people, while a further 3,600 income dependent people will have reduced rates.

Opposition leader Councillor Wendy Thompson accused the council of 'desperation' when the move was mooted earlier this week.