HOUSEHOLDS have been warned to get help now if they’re struggling to pay council tax – as UK’s debt soars to £5.5 billion.
The amount Brits owed in late council tax payments grew by £510 million in the last year alone.
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This takes the total amount owed to a record high of £5.5 billion, according to analysis of new government data by the Centre for Social Justice.
The cost of living crisis is putting pressure on all household bills, but experts warn council tax should be considered a priority debt as the consequences of missed payments can be severe.
Missing just one payment can leave you saddled with having to pay your council tax bill for the entire year up front.
And additional legal fees can be added on the longer it takes you to pay, making the total debt even worse.
Since April 2021, at least 3.3 million liability orders have been granted by magistrates to give councils powers to recover debt, including the ability to send bailiffs.
What is council tax?
Council tax pays for local services such as schools, rubbish and recycling collection and street repairs.
The costs can vary dramatically between councils, with residents in some areas paying twice as much as those living in other areas every year.
But overall, council tax costs have risen dramatically across the country over the last few years.
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The average council tax bill for a band D property is £609 higher than a decade ago, equivalent to a 41% increase, official figures show.
A typical band D property saw its council tax price increase by £99 this year alone.
What happens if I don’t pay council tax on time?
The first thing that will happen if you miss your bill is you will receive a reminder in the post. The notice will tell you what you owe and you will usually be given seven days to pay.
If you don’t pay by the new date, you will receive a final notice with another seven day window, but will also lose your right to pay in instalments and will have to pay the bill for the whole year.
If you receive two reminder notices in one year, even if they are not for the same missed payment, you will also lose the ability to pay in instalments.
If you don’t pay your total bill within seven days, your council can ask a magistrate to send you a legal demand for payment. Any costs incurred by the council for this will be added onto your bill.
If this happens, you’re allowed to go to a magistrates court and give reasons for not paying.
Bailiffs may be sent to your home to collect the debt you owe as a last resort. This should only happen if you ignore letters saying bailiffs may be used.
Giles Watling, Conservative MP for Clacton has been critical of the steps taken to recover late council tax bills.
He said: “It cannot be fair that those struggling to make one payment are expected to pay for their entire annual bill in a single lump sum.
“Nor can it be fair that councils continue to let bailiffs pile fees onto debtors without ever checking their ability to pay.”
Can I get a discount on my council tax?
There are a range of discounts available on your council tax bill, depending on your living situation.
You are not counted (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
If you are on a low income, you may be entitled to Council Tax Reduction of up to 100%, but this varies from council to council and is based on your circumstances.
You can still apply for a reduction if you claim Universal Credit as these are different schemes.
You will get 25% off your bill if you live alone, or you are the only person in your home who is counted for council tax purposes.
You’ll get 50% off your bill if everyone living in your household is disregarded.
What are my rights if I’m chased by bailiffs?
If Bailiffs turn up at your door, it’s important to remember that they cannot force entry for missed council tax payments.
Bailiffs can visit your house between 6am and 9pm and can visit any day of the week.
You should speak to them about your debt at the door, but you don’t have to let them inside your home.
They will normally leave if you refuse to let them inside, but they can come back.
You don’t owe any debt if you’ve already paid it or if it belongs to someone else.
The best thing to do to prevent bailiffs coming back is to call them and pay the debt. Always ask for a receipt when you pay as you can use this as proof later.
If you can’t afford to pay in full, negotiate with them to pay smaller amounts over time.
You can make a “controlled goods agreement” where the bailiff will make a list of things you own and work out what they can sell to pay the debt off.
If you are worried about your council tax bills or are struggling to pay your debt, you can speak to Citizens Advice or a debt advice charity for guidance.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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