Stunning new statistics revealed 1000’s of individuals are scuffling with Council Tax arrears, and the way aggressive and forceful some councils are in attempting to claw again the cash owed. Inside simply a few weeks of a missed fee you might obtain a courtroom summon and discover bailiffs at your door.
From the start of this month, the federal government elevated the quantity that councils in England are allowed to place up council tax with out having to carry a neighborhood referendum. These with social care duties are additionally now in a position to increase council tax by 5%, whereas others can put it up by 3%.
Even earlier than the pandemic and the price of dwelling disaster hit, households throughout England and Wales had been dealing with a Council Tax disaster. However in a extra pronounced state of financial uncertainty, there are much more households struggling monetary stress.
Debt Buffer’s Key Findings
New information obtained by Debt Buffer utilizing Freedom of Info requests has revealed the stunning state of family debt even earlier than the coronavirus disaster hit. Though there was a pause in taking motion on the peak of the pandemic, the vast majority of councils have resumed aggressive motion to get well overdue money owed from already financially-stressed residents.
The analysis reveals:
- As much as 31% of households in England and Wales have been issued a courtroom summons for unpaid Council Tax. Up to now, reaching a complete of two.23 million Council Tax courtroom summons issued throughout England and Wales.
- Over 1 million Legal responsibility Orders have been issued, permitting councils the best to nominate bailiffs, with over £164 million already having been collected.
- Whereas practically all councils suspended motion through the peak of the COVID-19 disaster, 113 councils have already recommenced enforcement motion to retrieve Council Tax money owed.
Debt Buffer mapped out the Council Tax disaster throughout England and Wales right here. The info reveals how massive the size of the Council Tax disaster was even earlier than the pandemic. Nonetheless, with the added financial impression of lockdown many extra households may have fallen behind financially and be dealing with Council tax arrears.
What are Council Tax Arrears?
When you’ve missed even only one Council Tax fee, you’re in arrears and owe cash to your council. Arrears are a precedence debt and shortly escalate if the debt isn’t paid instantly.
Not like being in arrears (debt) with different payments, like bank cards, there are huge implications for being behind together with your Council Tax funds.
In nearly all instances, in case you ignore Council Tax arrears your council will challenge a courtroom summons shortly to get all the cash again directly. You’ll additionally find yourself having to pay courtroom prices and bailiff charges on prime of what you already owe, including a whole lot to your invoice.
If You Miss a Council Tax Fee
Penalties of Council Tax arrears are harsh and progress in a short time in comparison with different types of debt. When you presently pay your Council Tax in month-to-month instalments and fall into arrears, you lose the best to pay in instalments. Your total invoice additionally then turns into instantly due.
When you miss a fee, you’ll get a reminder from the council inside 2 weeks of the date it was due. You will have 7 days to pay, with no additional penalties and your debt shall be cleared. Nonetheless, in case you don’t pay inside 7 days, or it’s the third time that 12 months you’ve made a late fee, then the council sends a remaining discover.
This states that it’s essential to pay the rest of the 12 months’s Council Tax inside 7 days. When you fail to do that, your council will apply to the courts for permission to gather debt from you. Often known as a legal responsibility order.
With a legal responsibility order, a bailiff will be despatched to your private home or cash will be taken out of your pay or profit funds you might obtain, together with:
- Earnings Help
- Employment and Help Allowance
- Job Seekers Allowance
- Pension Credit score
- Common Credit score
What Ought to You Do?
When you’re struggling to pay, contact your council as quickly as attainable to try to get well the state of affairs earlier than it worsens. Chances are you’ll be eligible for a Council Tax discount, or be capable to unfold out funds over 12 months as a substitute. At their discretion, some councils are additionally in a position to supply a one-off low cost in case you nonetheless can’t pay what you owe. It’s all the time price getting in contact to see what assist and choices could also be out there to you.
Council Tax Reductions
Anybody over 18 and proudly owning or renting a house has to pay Council Tax, besides homes with solely scholar tenants. (When you’re not a scholar and stay with college students, you continue to should pay Council Tax). Nonetheless, a full Council Tax invoice is predicated on two or extra adults dwelling in a house, so in case you don’t match the complete necessities, you may be eligible for a discount.
Each single individual dwelling alone is eligible for a 25% off your Council Tax invoice. Youngsters don’t depend – so single dad and mom with kids beneath 18 are additionally eligible. Discover out who, for Council Tax functions, doesn’t depend as an grownup right here.
You may as well be eligible for a discount, probably as much as 100%, in case you’re on a low revenue or declare advantages. Nonetheless, what you might get varies. It will probably rely upon:
- The place you reside
- Particular person circumstances (revenue, variety of dependents, residency standing)
- Your family revenue, together with a associate’s revenue and any financial savings you will have
- Whether or not different adults or kids stay with you
It’s additionally all the time price checking whether or not you’re in the best Council Tax band as this may have an effect on what you pay. Nonetheless, it’s price making an allowance for that this will enhance, too.
If somebody you reside with has a extreme psychological impairment (similar to dementia) or different situation, you might be eligible for an additional low cost. Converse to your native council to seek out out extra.
Helpful Assets
Extra Debt Recommendation
Getting out of Council Tax arrears is only one step to managing your money owed. Learn these articles subsequent to seek out extra methods to beat your debt and ensure cash worries don’t get you down.