Councils in England and Wales can reduce or write off your council tax under Section 13A (1)(c) of the Local Government Finance Act 1992. This has been called "the best-kept secret in council tax law". These Section 13A write-offs can be used if your house is uninhabitable because of flooding or fire. But you can also get a write-off if you have no money to pay your council tax after paying for … [Read more...]
What to do if you have problems paying Council Tax
In 2021, National Debtline has found that more than 7 million people in Britain are worried that they won’t be able to afford their council tax bills over the coming year. So if you are having problems paying your council tax, you are not alone. But what can you do if you have arrears? This problem has been increasing for many years. In the decade between 2009 and 2019, the proportion of … [Read more...]
Which bills and debts to pay first – an example
What would you say to someone asking which of these bills and debts they should pay first? Housing Benefit overpayment £500 Catalogue £250 Credit card £600 Council tax £600? This is an increasingly common sort of situation in Britain. Citizens Advice has reported in August 2018 that £19billion is owed to essential bills including council tax and benefits overpayments. What … [Read more...]
It’s time to stop sending people to prison for council tax debt
A new report called "I can't believe we still do that" produced by Payplan and the Institute of Money Advisers (IMA) looks at the imprisonment of people for council tax arrears in England and Wales. Councils started court action to send 4,881 to prison in 2016-17. Their average debt was only £2,213. UPDATE: In April 2019 the Welsh government ended imprisonment for council tax debt. This … [Read more...]
Councils sent 2.3 million debts to bailiffs in 2016/7
Councils are using bailiffs more frequently to collect council tax arrears, parking tickets and other debts. Money Advice Trust has collected figures from councils across the country that show: councils referred 2.3 million debts to bailiffs in 2016/7 this is an increase of 14% on 2 years ago and c. 30% on 4 years ago. You can see individual council details using the map … [Read more...]
Which debts can you go to prison for not paying?
I don't think people should be sent to prison for not being able to pay a debt. It rarely happens, but it's important to know the sorts of debt where this is a possibility. About a hundred people a year are sent to prison for council tax arrears - here is a case where a mother was in prison for 40 days before being released. About 30 people a year go to prison for not having a TV licence - … [Read more...]
Worried about rent arrears and being evicted?
Increasing numbers of people are worried about being able to pay the rent - research in March 2016 by Shelter, the housing charity, has found that a million people in Britain have visited their GP because of the stress and anxiety of affording the rent. Rent arrears are priority debts because if you don't do anything about them, you are very likely to be evicted. In 2015, there were 170 tenants … [Read more...]