COUNCIL TAX DEBT READY TO EXPLODE
Thousands struggling with bills as arrears hit £7m
A CONSUMER watchdog has warned of a council tax debt “explosion” as the financial cost of the pandemic mounts. Citizens Advice Scotland said thousands of struggling people last year were nearly £7million in arrears. It is urging the Scottish Government to consider wiping out the debt or creating a hardship fund. CAS , whi c h advises people with money problems, says council tax debt is the No1 issue its network deals with. It said 2257 people sought help over a debt issue involving council tax in 2019- 20, with arrears totalling £6.8million. CAS fears the end of furlough and payment protection schemes will add to pressure on family budgets.
Myles Fitt, CAS spokesman for financial health, said: “Scotland is potentially facing an explosion of council tax debt in 2021. The figures before the pandemic are bad enough but the real fear is that Covid-19 is going to make matters much worse.
“Councils across Scotland showed a real empathetic approach to those who found themselves in council tax payment difficulties and the payment breaks in the first six months of the pandemic were extremely welcome.
“However, this has led to arrears building up, arrears that will be difficult to meet for the many people who have during that period experienced an income drop due to unemployment or reduced working hours.”
He added: “We would like to see those who have fallen into council tax debt solely because of an economic consequence of Covid-19 be given some sort of help. This could be through the Scottish Government undertaking to meet the costs of writing off such debt, the establishment of a Council Tax Hardship Fund, or through the long-term continuation of supportive forbearance by local authorities.”
Separately, Scottish Labour deputy leader Jackie Baillie has revealed figures showing thousands of people have benefitted from applications for debt moratoria. As of November 30, 1027 applications were granted.
Baillie said: “Scottish Labour is calling on the SNP Government to commit to extending the support in the legislation until at least September – we cannot have thousands of Scots being overwhelmed by debt as a result of the pandemic without providing additional support.”
A Scottish Government spokesman said: “The Council Tax Reduction Scheme means nobody has to endure financial difficulties because they have lost their ability to pay their council tax – including those impacted by coronavirus.”