Council tax debt has become the largest arrears related problem in Wales, with Citizens Advice reporting a 51% rise in reported cases last year.
Citizens Advice Cymru said the ‘significant’ increase had caused a steady rise in bailiff related issues, with a third of the people approaching the organisation with council tax arrears over 2014/15 stating they had faced a problem with bailiffs collecting debts.
Annual data reveals problems with rent arrears across the social and private sector climbed by over a quarter in 2014/15 as people struggled to pay housing costs.
The charity warned welfare reform was having a significant impact on the Welsh community, with 39% of all problems they were approached with being linked to the changes. Over half of those who sought help in the past year relating to benefits and tax credits were disabled or had a long-term health condition.
Fran Targett, cirector Citizens Advice Cymru, said: ‘Although the economy is recovering we are still seeing increasing numbers of people who are struggling to maintain a decent standard of living and finding it almost impossible to cope financially year on year.
‘People are telling us that they are having to cut back on food in order to pay their rent and energy bills. Many are being forced to go further into debt to live from day to day. We are also concerned that the planned increase in interest rates or a severe cold winter could push people over the edge.
‘Getting into serious debt not only has a devastating impact on the health and well-being of individuals and their families, especially children, but having to deal with the consequences such as rehousing a homeless family could have a significant financial knock on effect on local services. This being at a time when local authorities are having to deal with cuts to funding.’
