Why you should NEVER miss a council tax payment as thousands continue to fall behind on bills

HOUSEHOLDS are being urged to keep up with their council tax payments as the number of debt cases being reported to a charity continues to climb.

Citizens Advice Scotland (CAS) has revealed that over 3,000 have missed council tax payments between October last year and September this year.

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The charity said the average council tax debt now stood at £3,368.69 in Scotland, almost three times the average council tax bill of £1,302.

CAS believes the ongoing cost-of-living crisis has led to people prioritising other household costs over council tax such as food, housing and energy.

Millions more households in England and Wales are also affected, according to the Department for Levelling Up, Housing and Communities.

Some 3.5million people across the UK were in council tax arrears by the end of the pandemic, according to Citizens Advice.

The charity is advising customers that council tax should be treated as a “priority debt”, meaning a debt people should deal with first or risk punitive enforcement action that is faster and harsher than that for commercial debt.

Failure to repay priority debts means that you could lose your home, have your energy supply cut off, lose essential goods or go to prison if you don’t pay.

Councils can also subject those in arrears to a speedy debt enforcement through a bank arrestment as a means of recovering payment.

Financial health spokesperson Myles Fitt said: “With over £10m of council tax debt seen by CABs, and the average debt close to three times the average bill, this is the largest single debt issue CABs deal with.

“We are seeing the impact of the worst cost-of-living crisis in living memory and people are understandably prioritising essential costs like food, energy and housing and may skip their council tax payments as a result.”

“It’s understandable that some people may put council tax payments out of their line of sight but that carries real risks.”

“We are encouraging people to keep focused on council tax payments amidst other bills, and to see it as an essential living cost.”

Most households pay their council tax in monthly instalments over 10 or 12 months, but if you fall behind you can be asked to pay all the outstanding balance at once.

But struggling households can get help with council tax bills and if you’re worried about falling behind then it’s worth checking out what you could get.

If you can’t pay your council tax bill it’s best to let the council know immediately rather than putting it off.

They may be able to signpost you for extra support that you could be eligible for.

Can I pause my council tax payments?

Struggling households can pause council tax payments and other bills for 60 days.

The breathing space scheme protects hard-up Brits from bailiffs and prosecution for two months.

The scheme does apply to council tax arrears and other outstanding debt, including tax, benefit overpayments as well as credit cards and loans.

During this time, households will receive professional debt advice to find a long-term solution to their financial difficulties.

You can find out more about who’s eligible and how to apply.

Who can get a council tax discount?

Local authorities can offer you a discount or wipe your bill completely depending on your circumstances.

Your household income, whether you have children and if you are on benefits will influence what you get off.

You can apply for a council tax discount through the Government’s website.

But bear in mind you’ll need your National Insurance number, bank statements, a recent payslip or letter from the Jobcentre and a passport or driving licence to hand.

If you don’t know which local authority you live in you can check by using the Government’s council locator tool.

Single people

You can get a 25% discount on your council tax if you are the only person living in the home or if you live with other people who are classed as “disregarded”.

Someone is classed as disregarded if they are severely mentally impaired, a carer, in hospital, a care home or hostel, has another main residence, or is a student, youth trainee or apprentice.

For example, if one single adult lives with a student, they can get 25% off their council tax.

If you live with someone who doesn’t have to pay council tax, such as a carer, you could get a reduction of up to 50% too.

And, if you live in an all-student household you can get a 100% discount.

Retirees

Pensioners can also get a council tax discount, including those on the Guarantee Credit element of Pension Credit who can get 100% off.

If not, you could still get help if you have a low income and less than £16,000 in savings.

Meanwhile, a pensioner who lives alone also qualifies for a 25% discount.

Low-income households

Low-income households or those on benefits can also apply for a reduction on their council tax.

Whether you are eligible depends on where you live.

You could also get a deferral if you’re struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.

Always remember though, if you are struggling you should contact your council as early as possible.

That will prevent your situation from deteriorating and landing you in trouble.

This post first appeared on thesun.co.uk