£19bn in debt... families crushed by cost of living

FAMILIES have racked up £19billion debt on everyday bills, leaving them living in fear of bailiffs turning up.

Household arrears on council tax, utility bills and tax credit overpayments have now overtaken consumer credit as the key money problem, according to debt charity Citizens Advice.

Last year it helped 690,000 people with household bill debts, compared to 350,000 with consumer credit difficulties.

The charity says it also helps one person every three minutes with bailiff issues and is calling for better regulation of unaccountable debt collection firms.

Citizens Advice chief executive Gillian Guy said: “Our evidence shows aggres- sive tactics by bailiffs cause huge distress and can push people further into debt.

“Families are going without food or electricity to meet their payments.”

The charity helped one retired couple who owed £700 in council tax and were visited by aggressive bailiffs who demanded payment in full. They are now afraid to open their front door.

Citizens Advice says the biggest household debt is tax credit repayments at £7.47billion. It happens when people are overpaid following changes to their circumstances or errors by HMRC. This is followed by council tax at £2.84billion, other benefit repayments at £2.66billion, water bills of £2.2billion and rent arrears at £1.42billion. Energy, telecoms and fines make up the rest of the debt.

Richard Watts, of the Local Government Association, responded to claims of heavy-handed bailiffs collecting owed council tax. He said: “Councils understand the pressures some households are under and will support people in financial difficulty wherever possible.

“No council wants to have to debt collect from residents... but local authorities have a duty to collect taxes, which fund essential services.”