Get help tackling council tax arrears
I have council tax arrears and I’ve had a letter saying they are going to arrest my wages. What does this mean? How am I going to afford to live if my wages are taken?
When someone is employed, a creditor (provided they’ve served the correct paperwork) can go to the employer and request a deduction is taken from wages and sent to the creditor directly.
They can’t take all your wages, there is a calculation that your employer must use to work out the deduction.
For example, if you earn below £529.90 per month, no deduction can be taken as any sum up to £529.90 is a “protected amount”.
If you earn above £529.90 but not more than £1915.32 then they can take 19 per cent after the first £529.90 or £15, whichever is the greater.
This is always based on your net earnings (after tax and National Insurance).
As an example, if you earn £1500 per month the amount your employer can deduct is £184.32 per month.
If you’re a higher earner then the amount that can be deducted increases.
So, if your net income is between £1935.32 and £2879.52 per month, the deduction amount allowed is £263.23 plus 23 per cent of all earnings above £1935.32.
If your monthly earnings are above that the arrestment amount increases again.
The arrestment stays in place until the amount they are collecting is repaid, unless you change employer.
In that case the creditor would need to find the details of your new employer to re-serve the arrestment.
There are ways to stop the arrestment. If for example, someone successfully applies to the Debt Arrangement Scheme to repay their debt, the arrestment will be lifted, and if someone applies for bankruptcy, the arrestment is also lifted.
Free money advice agencies like Renfrewshire Citizens Advice Bureau (0141 889 2121) or Advice Works (0300 300 1238) can discuss these and other options with you, and we’d recommend speaking to a debt adviser to get help in your situation, and to ensure you have enough money left to live on.
I live in the countryside in Renfrewshire and a fortnight ago there was a fallen tree. As a result my electricity supply was cut off. I reported this immediately, but my supply was down overnight and only came back on the following evening. I was unable to work from home and have lost money. What happens here? Can I claim money back?
If the power cut wasn’t planned, the amount of compensation you can get depends on how many homes were affected by the power cut and whether it was caused by bad weather.
If you want to find out how many homes were affected by a power cut, contact SP Energy Networks on 0330 10 10 444.
As sounds likely here, where fewer than 5,000 homes were affected you’ll get £75 if the power was out for longer than 12 hours, and £35 for each 12 hour period you still don’t have power thereafter.
In the event that more than 5,000 homes were affected, you’ll get £75 if the power was out for longer than 24 hours, and £35 for each following period of 24 hours up to a maximum of £300.
If the power cut is deemed to have been caused by bad weather, for example where a storm damaged power lines - you’ll get the following compensation regardless of how many homes were affected: £70 if the power was off for 24 hours (this can be 48 hours if it was a severe storm), and £70 for each following 12 hours, up to a maximum of £700.
Unless the power cut was caused by bad weather, SP Energy Network are the company you make your complaint to, rather than your energy supplier.
You should ensure you claim within three months of the problem to receive compensation.