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Daily Mirror
Daily Mirror
Business
Ruby Flanagan

All the help you can get to pay Council Tax as debts reach 'record high' of £5.5billion

The amount of unpaid Council Tax has reached a "new historic high" of £5.5billion according to official figures.

The Centre for Social Justice (CSJ), which analysed the figures from the Department for Levelling Up, Housing, and Communities, said that Council Tax arrears have grown by £510million in the year up to March 2023.

The think tank also said the amount had "doubled" in the last decade.

According to the group, since April 2021 over thee million liability orders have been granted by magistrates which give councils powers to recover the debt owed.

This includes giving them the power to send in bailiffs, deduct money directly from wages or benefits, force the sale of a home, and even have a debtor sent to prison.

In April this year, local authorities were given the power to increase their area's bill by over 5% without a referendum.

This has put a major strain on households that were already struggling to cover other rising costs.

Commenting on the findings, Matthew Greenwood, head of debt at the CSJ said: "We don’t live in the 1990s anymore and the vast majority of people are perfectly willing to pay their Council Tax.

"Outdated regulation and overzealous use of bailiffs drives vulnerable families, who can’t afford their bills, into a debt spiral while worsening their issue with further fees.

"We need a new conversation about how we help vulnerable families out of debt. It is with targeted support and long-term repayment plans that the public purse can get the money it is owed, not aggressive collection."

What you should do if you can't pay your Council Tax bill

If you are struggling to pay your Council Tax bill, then you should first contact your local authority and they can tell you what support they offer.

Each council runs a Council Tax Support scheme (sometimes called Council Tax Reduction) where you could qualify for money off your bill.

You can apply for Council Tax Support if you own your home, rent, are unemployed or working.

In some cases, it may be possible to work out a new payment plan with your local council before you fall behind.

Most of the time, you will be eligible for help if you’re on a low income or claiming benefits - although the exact criteria does vary between local authorities.

You will have to check your local authority's website to find out exactly what you could get.

YOu can use the Gov.uk website here to help find your local council website.

Can you claim a Council Tax discount?

Many circumstances will make you eligible for a Council Tax discount however, it all depends on your living arrangements, with discounts ranging from 25% to 100% off your bill.

As an example, if you're the only adult living at your address then you could be entitled to 25% off your council tax bill.

The same goes if there is one adult living with someone else who is "disregarded".

You are not counted as being "disregarded" for council tax purposes if you:

  • are under 18 years old
  • are on certain apprentice schemes
  • are 18 or 19 and in full-time education
  • are under 25 and get funding from the Education and Skills Funding Agency
  • are a student nurse
  • are a foreign language assistant
  • are considered to be seriously mentally impaired
  • are a live-in carer for someone who is not your partner, spouse or a child under 18

So you could claim a discount if there is one student and one adult living together, or a live-in carer who looks after someone with a disability.

You could get 50% off your council tax bill if everyone in your home is “disregarded” from this bill.

And the maximum 100% discount could apply to someone who has a severe mental impairment and lives alone, or if you live in an all-student household.

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