Families face council tax debt crisis, warns charity

SCOTLAND is in the grip of a council tax debt crisis, a major charity has claimed.

The sum owed by people seeking help from Citizens Advice Scotland (CAS) for financial problems has rocketed to almost £13million in the past year.

Record numbers are asking for advice as they struggle to cope with household bills, the charity said.

Between September 2021 and last September, 3,717 CAS clients owed a total of £12.7million to local authorities in unpaid council tax.

That is more than treble the previous year’s figure of £4.1million, which was owed by 1,422 people who sought help from the network. The average debt for a CAS client is now £3,420 – almost three times the average council tax bill in 2022-23 of £1,238.

CAS has warned that the cost of living crisis could lead to people pribeing oritising costs such as food, housing and energy while falling even further behind on council tax payments.

Previous research by the charity found a large increase in complex debt clients – those with multiple debts – who would take longer to pay their debts, with one in two clients having no money to pay their debts after covering essential outgoings.

CAS financial health spokesman Myles Fitt said: ‘Council tax debt is the biggest debt issue the Citizens Advice network deals with.

‘These figures suggest the cost of living crisis could see an explosion in the levels of arrears across the country as people prioritise expenditure for immediate cost of living needs.

‘CAB clients owe over £12.7million in arrears, with the average debt almost three times as much as the average bill.

‘That is the scale of the debt some people are facing while the cost of living continues to soar. It is no wonder people are taking longer and longer to pay off their debt.

‘One option people could use is to check to see if they are entitled to any savings or exemptions through the Council Tax Reduction scheme. People can v is itwww. check my council tax. scot and see what they are entitled to.

‘People feeling worried about their finances can always turn to the Citizens Advice network for help. Our advice is free, confidential and impartial and can deliver real results. We are for everyone, regardless of whether you are working or not.’

Overall figures for the level of council tax debt across Scotland in 2022 have yet to be published.

But last year it was disclosed that the amount owed to local authorities rose to £139.5million in March 2021, an increase of nearly 25 per cent on the previous year.

Last month it emerged families face the threat of unlimited council tax rises as councils struggle to tackle a looming financial black hole.

Deputy First Minister John Swinney has given town hall chiefs the freedom to hike the ‘regressive’ tax as much as they want next year, despite the cost of living crisis.

Councils will also be under immense pressure to hit families with higher bills after Mr Swinney failed to provide funding they had pleaded for.

Local authorities had warned ministers they faced a £1billion budget shortfall and said council services could be ‘significantly reduced or stopped altogether’.

It leaves councils facing a choice between cuts or imposing punishing tax rises on hard-pressed families.

‘Explosion in levels of arrears’