William Eichler 08 July 2016

Councils must ‘review their debt collection practices’, charity says

Council tax debt collection tactics are driving people into more debt, charity argues.

A new report from Citizens Advice says the number of people contacting them for help dealing with council tax debt problems has increased by a third since 2013/14.

The report, Catching up: improving council tax arrears collection, said the charity helped people with 196,000 council tax debt problems in England between April 2015 and March 2016, making it the number one debt issue for the charity.

Citizens Advice asked more than 1,000 people with council tax debt about their experience and found 54% said the council’s actions made it harder to clear their debts.

71% of respondents said they had extra charges added to their bill and 48% had been visited by a bailiff. Only 30% were offered an affordable repayment plan.

Almost half (46%) of people also said authorities stopped allowing them to pay their council tax by normal monthly instalments and asked for the remaining costs for the year in one go.

One person who contacted the charity for help had a £27 debt which ballooned to £417 after council officials charged fees for obtaining a court order and calling bailiffs.

The report notes some local authorities have introduced better collection practices, such as the use in-house bailiffs who ask debtors about their financial situation.

Gillian Guy, chief executive of Citizens Advice, said: ‘Some councils are too quick to crackdown on people falling behind on council tax.

‘Of course it’s right people should repay their council tax - but calling in bailiffs, adding on extra charges or forcing someone to pay the rest of the year’s council tax bill in one lump sum can make the situation worse for everyone.’

‘Some councils have developed much fairer approaches to collecting debt and as a result get money back much faster,’ Ms Guy continued.

‘Even simple steps, like improving communication and offering a realistic repayment plan, can ease the strain on debtors and ensure councils get what they’re owed.

‘It is really important councils review their debt collection practices to make sure they are helping people to overcome their debt problems rather than making their financial problems worse.’

However, the Reverend Paul Nicolson from Taxpayers Against Poverty, said it was disappointing the report fails to mention DCLG, MOJ or DWP guidance about vulnerable people.

He said: 'The most disappointing part of the CAB report is its bland assumption that the intrinsic unfairness of enforcing a tax against shredded benefit incomes will continue and only needs to be "improved". It must be stopped.'

SIGN UP
For your free daily news bulletin
Highways jobs

Team Co-ordinator

Local Government & Social Care Ombudsman
£30,253 - £36,117 per annum
For over 50 years we have been the voice of the public Hybrid working – allocated to offices in Coventry or York
Recuriter: Local Government & Social Care Ombudsman

Children and Young People with Disabilities Support Worker

Essex County Council
£26284.00 - £33256.00 per annum + + 26 Days Leave & Local Gov Pension
Children and Young People with Disabilities Support WorkerPermanent, Full Time£26.284 to £33,256 per annumLocation
Recuriter: Essex County Council

Information Governance Assistant - 18 month FTC

Essex County Council
£25959.00 - £28621.00 per annum + + 26 Days Leave & Local Gov Pension
Information Governance AssistantFixed Term, Full Time£25,959 to £28,621 per annumLocation
Recuriter: Essex County Council

Housing Officer- Income Recovery - WMF2881e

Westmorland and Furness Council
£36,363- £37,280
Following an exciting restructure of our Housing Team, we are delighted to offer several new opportunities Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Community Learning and Skills Tutor - ESOL WMF2887e

Westmorland and Furness Council
£36,363 - £37,280 (pro rata)
This is an exciting role which will involve delivering both accredited and non-accredited ESOL courses at various levels. Carlisle, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner