Household squeeze as millions of families face council tax bill rise "The axeing of council tax benefit has major implications for universal credit, which is supposed to be all about simplifying welfare and giving people a stronger incentive to work," said Matthew Pennycook, the report's author. These changes undermine both goals. There will now be a highly-complex and confusing patchwork of local support while the low-paid will keep even less of an extra pound in earnings than the Government has claimed. Gavin Kelly, chief executive of the Resolution Foundation, said: "Millions of England's poorest households - both in and out of work - are already very close to the edge given falling wages, tax credits and benefits. Very few of those currently exempt from paying the full rate of council tax are expecting a large new bill to drop onto their doormat this spring. When it does, they are going to find it hard to cope. The new system will result in hard-pressed councils spending scarce resources chasing some of the poorest people in the country for non-payment.