The Government should ensure local authorities are not ‘aggressively’ chasing council tax debt from those who can least afford it, MPs have said.
The Levelling Up, Housing and Communities Committee has found instances of councils adopting ‘heavy-handed tactics’ to recover unpaid council tax.
The cross-party committee recommended that the Government clarify statutory regulations to make clear that councils ‘have discretion not to require immediate repayment of the full unpaid balance’.
MPs welcomed progress in establishing an Enforcement Conduct Board (ECB) as an industry oversight body, and recommended that councils only engage with enforcement agents accredited by the ECB.
LUHC committee chair Clive Betts said: ‘Councils are themselves under significant financial and service pressures, but councils should not be chasing arrears from individuals who can least afford it.
‘Councils should not rush to escalate collection activity but consider the ability of the individual to pay, avoid causing distress, and signpost suitable debt advice.
‘Enforcement action should absolutely be a matter of last resort. Heavy-handed tactics to recover council tax debt are not acceptable.
‘The Government should stamp out the prospect of poor enforcement behaviour by considering the case for a statutory code for the enforcement agent industry.’
