Huge jump in number of people struggling to pay Council Tax
The number of people seeking help with their Council Tax bills rocketed last year.
Last year we helped 45,561 people with arrears on Council Tax, up from 25,500 in 2012, a 77% increase.
As the UK’s leading debt charity we help people with all manner of debt problems. These range from credit cards, high interest payday loans, problems with bank loans, overdrafts and hire purchase agreements.
When advising clients we always look first at any arrears on Council Tax as this has to be treated as a priority payment, alongside things like rent, mortgages, utility bills and other essential household costs.
Bailiffs and benefits
The rise in these figures coincides with the changes in Council Tax benefit across England last year. The benefit has been replaced with localised Council Tax Support. It’s estimated that due to this change 2.4 million (already struggling) low income families had to pay an average of £138 more Council Tax in 2013/14.
Local councils use court bailiffs to enforce the payment of Council Tax and the changes in bailiff law next month potentially add an additional burden for those struggling with Council Tax payments.
Under the new laws, people with Council Tax debts could have £310 added to their debt simply through bailiffs making a single visit to their home.
Council Tax and priority payments
Council Tax arrears are always treated as a priority payment, to be paid before unsecured debts such as credit cards or loans. Our advisors often have to give emergency advice to people with court bailiffs at their front door.
We help all our clients by putting together a detailed income and expenditure budget which helps pin-point the best debt solution. We always explain the difference between priority and non-priority bills, however some clients are not aware of the consequences of non-payment of priority debts.
More support for those struggling
We’re hoping that local councils will offer more support for those struggling to pay their Council Tax. Ideally we’d like to see that local councils signpost those struggling towards free debt advice agencies and charities.
We’d also like to see councils be more accepting of reasonable repayment offers, particularly when the person struggling has taken debt advice. Most of all we’d like councils to afford people breathing space when they’re struggling to repay.
Our chief executive Mike O’Connor said: “More and more people are struggling to pay essential household costs. Stagnating incomes, changing work patterns, rising living costs and changes in welfare benefits are a toxic combination.
“Government, business and charities need to ensure that safety nets and protections are in place to ensure that short-term financial problems do not escalate into problem debt which can blight the lives of individuals, families and whole communities.”
What to do if you’re struggling with Council Tax
As with any type of debt problem if you’re unable to pay your Council Tax in full each month you should seek free and impartial advice straight away.
You can get this help by calling us or using our confidential online Debt Remedy tool. Debt Remedy takes 20 minutes to complete and will help you put a budget together and then determine what the best debt solution is, and your next steps.
More on debt:
Why the payday loan industry needs cleaning up now
Six dangerous ways to borrow
Logbook loans: the loan that could cost you your car
Six signs you're caught in a debt spiral
What to do if your children are in debt
Comments
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Well i live in manchester and have just been hit with a rise of £131.45 to pay for our new and great police commissioner believe he wanted more than this he wanted something like 5% but they knew under goverment rules it would then have needed a referendum,and this was never going to happen. What makes me laugh is the fact it was a made up job and now the people of manchester are paying for a job that never was,mates looking after mates,the police commissioner then employs his mate who had left the council with a big pay off,and he his earning upto £22,000 a year on a 3day week so obviously some one has to pay for all this,the good council tax payers in manchester. They are cutting services like no ones buisness,streets cleaned once every 2 weeks if you are lucky and possibly soon maybe once a month,no money they say,yet 48million just spent doing up a library,and millions spent doing the town hall up,but again they have no money.
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A few years ago there was a BBC report on a recently elected English Democrats-controlled council. When interviewing the ED council leader they were told that he had discovered that the council's responsibilities had been reduced over the years and yet the number of council seats had stayed the same. So he cut six of them. Much of the rest of the interview then followed the same lines. Later the reporters hit the streets and asked local people what they thought - not much it seemed. In fact none of them seemed to really care who was in power or what they had done. Apathy wins every election and until that changes nothing else will.
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easygoing, for your information and as you have posed the question, food banks were brought in by Labour, more than ten years ago, but not publicised, for reasons of 'spin' (remember that?) and even though Labour in 1997 inherited a current account surplus from the outgoing Conservative government. The Coalition left the food banks in place and urged those in genuine need to use them. Lo and behold, the Left (and you) attack the wicked Tories. Interesting that everything that doesn't fit with your Left-wing, Guardian-reading outlook is piffle and you have a cultivated ability to ignore the facts under your nose. I suppose you will tell us next that the late Bob Crow and Tony Benn were great achievers. My question to you is: what attracts you to this site, which is about financial self-improvement, isn't it? Something the 'nanny state' Left constituency does not believe in. More tax, more tax!
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22 March 2014