As many as three million families living in poverty are missing out on an average payment of £700 to help pay for rocketing council tax bills, according to new figures obtained by the Liberal Democrats. Despite the average council tax bill having almost doubled since Labour came to power the numbers of people taking up council tax benefit has fallen by at least 12 per cent between 1997-98 and 2005-06. Liberal Democrat work and pensions spokesman Danny Alexander MP says:

"Council tax is hitting those in poverty disproportionately hard, making life incredibly difficult for millions of hard-working poor families and especially their children. Council tax should be scrapped and replaced with a fair local income tax, so that people pay what they can afford. Families in poverty should not be subsidising local services for everyone else."