Laura Sharman 24 November 2021

MPs launch inquiry into collection of council tax arrears

MPs launch inquiry into collection of council tax arrears image

An inquiry into how local authorities in England collect council tax arrears has been launched by MPs.

The Housing, Communities and Local Government (HCLG) Committee will examine whether there should be changes to the law on the recovery of council tax arrears. It highlighted that England is the only nation in the UK where local authorities can use their powers to send someone to prison for up to three months for the non-payment of council tax.

It will also explore how local authority council tax support schemes affect council tax collection rates, and if there are examples of best practice for council tax arrears collection.

Clive Betts, chair of the Committee, said: 'Council tax arrears is the most common debt problem which people approach Citizens Advice about. COVID-19 has also inevitably had a major impact on many household incomes with some residents suffering financial hardship, leaving them to fall behind on their council tax payments.

'In our inquiry, we are keen to understand about how councils differ in their approaches to council tax arrears, the support available to those who fall into council tax debt, and whether there needs to be changes to the law on the recovery of council tax arrears. We are also keen to examine how different council tax support schemes affect council tax collection.'

Figures show the total amount of council tax outstanding is £4.4bn, with the pandemic causing council tax debt to increase by £841m last year.

Reform of council tax, including devolved powers for local authorities, are among the plans in a co-operation agreement between Labour and Plaid Cymru in Wales.

SIGN UP
For your free daily news bulletin
Highways jobs

Service Manager - Care Leavers

Cheshire East Council
£54,994 per annum - £62,777 per annum
We're looking for an experienced and passionate Service Manager to join Cheshire East Council. Location TBC
Recuriter: Cheshire East Council

SEND Plan Writer

Cheshire East Council
£31,537 - £34,434
We're looking for a dedicated SEND Plan Writer to join Cheshire East. Macclesfield, Cheshire
Recuriter: Cheshire East Council

Independent Reviewing Officer

Cheshire East Council
£42,072 - £54,994
Make a difference for children in care Macclesfield, Cheshire
Recuriter: Cheshire East Council

Occupational Therapy Lead

Gloucestershire County Council
£48,226 - £51,356 per annum
Are you passionate about supporting adults to live independently and achieve what matters most to them? Gloucestershire
Recuriter: Gloucestershire County Council

Adult Education Director

City Of Doncaster Council
DR1 £45,564 to DR8 £52,209
We are seeking an experienced and inspirational Further Education leader Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner