Action after too many people faced bailiffs

money@mirror.co.uk DEBT charities are breathing a sigh of relief after the Government announced it is clamping down on its own heavy-handed tactics to chase council tax arrears.

It has promised to no longer send in the heavy mob when people get behind with this essential bill and treat those struggling more fairly.

This follows widespread criticism from the Treasury Committee, charities and debt organisations about the ruthless way arrears have been pursued by local councils.

In October last year a report on household finances by the Treasury Committee slammed the debt collection practices of public authorities. It described bills as being “pursued over-zealously, uncompromisingly, and with routine recourse to bailiffs”.

Stepchange Debt Charity says almost of third of those responsible for paying council tax are in arrears when they seek help with debt – and many are being hounded by bailiffs turning up at their home.

The group has seen countless examples of people receiving threatening letters – that frighten people and actually make them less likely to respond – extremely high fees and charges that can make small debts escalate into huge ones.

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Richard Lane, head of external affairs at StepChange Debt Charity, said: “Among StepChange clients responsible for paying council tax, 30% last year were in arrears on it at the time they sought help from us.

“Generally people get behind because they simply don’t have the money to pay it, yet too often local authority debt-collection practices don’t chime with this, and people find themselves being pursued in heavyhanded and frightening ways, including frequent use of bailiffs.

“Yet it doesn’t have to be like this, as some of the more enlightened local authorities are demonstrating.

“The Government is taking some very positive steps by introducing the new debt Breathing Space, but it’s important this is matched by enlightened debt-collection practices by local authorities themselves.”

PayPlan, which offers free debt advice, has seen a drastic rise in the number of people speaking to its advisers about council tax problems – in particular those who are struggling with the way it is collected.

Alistair Chisholm from PayPlan said: “It can be difficult to set up repayment arrangements with councils, so we often provide advice and support to people who are frightened and struggling to cope with the demands of bailiffs.

“Imprisonment of people for the non-payment of council tax is very costly for Rishi Sunak the public purse, extremely damaging to individuals and families, and does nothing to pay the debt to the council concerned.”

Ministers have announced there will be new guidance for councils to improve the way they recover unpaid council tax. They say this will create a fairer and more compassionate debt recovery system that will give vulnerable people who fall behind with council tax payments greater protections from aggressive debt enforcement. This includes ensuring people are properly assessed and given enough time to pay off arrears at an affordable rate.

Local Government Minister Rishi Sunak said: “Council tax collection is essential to running public services, like caring for those most at risk, collecting bins and keeping our transport networks running.

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AThe experiences of some innovative councils show that council tax collection rates can be improved without resorting to the unfair treatment of vulnerable people.

“That’s why I’m pushing forward work to make the council tax collection system fairer and more efficient – so people are treated with compassion while services get the funds they need.”

Fairer council debt collection is achievable and it can work in a council’s favour, meaning more of the arrears get paid and end up in the local authority’s pocket – rather than filling the coffers of bailiff firms.

St Albans City & District Council, for example, has built stronger connections with the debt advice sector to create a system that determines residents’ ability to pay. Council staff refer vulnerable residents

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Ato debt advice services and hold off from applying to the courts for Liability Orders (which give councils the powers to collect debt), unless payments run beyond 12 months or if multiple payment arrangements are broken.

This has led to the council being able to maintain high collection rates – 98.9% in 2017/18, compared to an average of 97.1% across England.

North Warwickshire Borough Council has high collection rates too at 98.6%, thanks to its common sense approach of supporting vulnerable households via its Financial Inclusion Partnership, which helps residents access the right information and services according to their needs.

By putting assessments of what people in financial difficulty can afford at the heart of their processes, the council has

Jail for those not paying council tax is costly for the public purse

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