Some households in England could see their council tax bills rise by £70 next year, on the back of powers to increase the levy by 4% in 2020.
The Government said councils will be able to up rates by 2% in the next financial year, while local authorities with adult social care responsibilities will be able to raise rates by up to 4%.
The average band D council tax on a home in England is currently £1,750, so a 4% rise would bring this to £1,820 – a hike of £70.
Those in Band H homes could face even higher costs of up to £140 in April.
The increase - which is well above inflation at 1.5% - will mark another slap in the face for millions of homes also set to be hit by punishing rail rises of 2.7% on January 2.
The announcement was made in the government’s annual local government funding settlement by housing secretary Robert Jenrick, who claimed the proposals will allow local authorities to access an additional £1.5billion for social care.
Jenrick said that local authorities will be able to increase council tax by up to 2% without holding a referendum and that councils with adult social care responsibilities will be able to raise their council tax by a further 2%.
These rises can be made without consulting residents, though the council would need to hold a referendum for any increases greater than this.
"We recognise the importance of addressing the challenges in our social care system. This is why we want to build the same level of cross-party consensus on social care as we have with the NHS, to make far-reaching changes to the way these services are financed and delivered," he said.
"In the meantime, we will do all we can to support local authorities."
During the election, the Conservative Party said it would provide £1billion of extra funding a year for social care, as well as a commitment to seek cross-party consensus for long-term reform.
James Jamieson, chairman of the Local Government Association, said: "The ability of councils to increase council tax and levy an adult social care precept next year gives them the potential to raise £1.6billion but this is not a sustainable solution.
"Increasing council tax raises different amounts of money in different parts of the country, unrelated to need, and adds an extra financial burden on households. The Government needs to follow through on its pledge bring forward proposals for long term reform of adult social care and how it is funded."
Are you on the right council tax band? Millions of households could be owed money for being on the wrong rate. Check your band here.
If you've moved home, you could also be due a refund on previous properties you've lived at. The Government estimates £1.7million is currently sitting in dormant accounts - here's how to check if you own one of them.
Alternatively, if you're classed as vulnerable or live alone, .
