Stunning new statistics revealed 1000’s of persons are battling Council Tax arrears, and the way aggressive and forceful some councils are in making an attempt to claw again the cash owed. Inside simply a few weeks of a missed cost you could obtain a courtroom summon and discover bailiffs at your door.
From the start of this month, the federal government elevated the quantity that councils in England are allowed to place up council tax with out having to carry an area referendum. These with social care duties are additionally now capable of elevate council tax by 5%, whereas others can put it up by 3%.
Even earlier than the pandemic and the price of dwelling disaster hit, households throughout England and Wales had been going through a Council Tax disaster. However in a extra pronounced state of financial uncertainty, there are much more households struggling monetary stress.
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Debt Buffer’s Key Findings
New knowledge obtained by Debt Buffer utilizing Freedom of Info requests has revealed the surprising state of family debt even earlier than the coronavirus disaster hit. Though there was a pause in taking motion on the peak of the pandemic, the vast majority of councils have resumed aggressive motion to get better overdue money owed from already financially-stressed residents.
The analysis reveals:
- As much as 31% of households in England and Wales have been issued a courtroom summons for unpaid Council Tax. To date, reaching a complete of two.23 million Council Tax courtroom summons issued throughout England and Wales.
- Over 1 million Legal responsibility Orders have been issued, permitting councils the correct to nominate bailiffs, with over £164 million already having been collected.
- Whereas almost all councils suspended motion through the peak of the COVID-19 disaster, 113 councils have already recommenced enforcement motion to retrieve Council Tax money owed.
Debt Buffer mapped out the Council Tax disaster throughout England and Wales right here. The information exhibits how massive the size of the Council Tax disaster was even earlier than the pandemic. Nevertheless, with the added financial influence of lockdown many extra households may have fallen behind financially and be going through Council tax arrears.
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What are Council Tax Arrears?
When you’ve missed even only one Council Tax cost, you’re in arrears and owe cash to your council. Arrears are a precedence debt and rapidly escalate if the debt isn’t paid instantly.
Not like being in arrears (debt) with different payments, like bank cards, there are massive implications for being behind along with your Council Tax funds.
In nearly all instances, for those who ignore Council Tax arrears your council will difficulty a courtroom summons rapidly to get all the cash again without delay. You’ll additionally find yourself having to pay courtroom prices and bailiff charges on prime of what you already owe, including tons of to your invoice.
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If You Miss a Council Tax Cost
Penalties of Council Tax arrears are harsh and progress in a short time in comparison with different types of debt. When you at present pay your Council Tax in month-to-month instalments and fall into arrears, you lose the correct to pay in instalments. Your total invoice additionally then turns into instantly due.
When you miss a cost, you’ll get a reminder from the council inside 2 weeks of the date it was due. You will have 7 days to pay, with no additional penalties and your debt can be cleared. Nevertheless, for those who don’t pay inside 7 days, or it’s the third time that yr you’ve made a late cost, then the council sends a remaining discover.
This states that you’ll want to pay the rest of the yr’s Council Tax inside 7 days. When you fail to do that, your council will apply to the courts for permission to gather debt from you. Also called a legal responsibility order.
With a legal responsibility order, a bailiff will be despatched to your own home or cash will be taken out of your pay or profit funds you could obtain, together with:
- Earnings Assist
- Employment and Assist Allowance
- Job Seekers Allowance
- Pension Credit score
- Common Credit score
What Ought to You Do?
When you’re struggling to pay, contact your council as quickly as attainable to try to get better the state of affairs earlier than it worsens. You might be eligible for a Council Tax discount, or be capable of unfold out funds over 12 months as a substitute. At their discretion, some councils are additionally capable of provide a one-off low cost for those who nonetheless can’t pay what you owe. It’s all the time value getting in contact to see what assist and choices could also be out there to you.
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Council Tax Reductions
Anybody over 18 and proudly owning or renting a house has to pay Council Tax, besides homes with solely scholar tenants. (When you’re not a scholar and reside with college students, you continue to must pay Council Tax). Nevertheless, a full Council Tax invoice is predicated on two or extra adults dwelling in a house, so for those who don’t match the complete necessities, you might be eligible for a discount.
Each single particular person dwelling alone is eligible for a 25% off your Council Tax invoice. Youngsters don’t depend – so single mother and father with youngsters beneath 18 are additionally eligible. Discover out who, for Council Tax functions, doesn’t depend as an grownup right here.
You too can be eligible for a discount, probably as much as 100%, for those who’re on a low revenue or declare advantages. Nevertheless, what you could get varies. It could rely upon:
- The place you reside
- Particular person circumstances (revenue, variety of dependents, residency standing)
- Your family revenue, together with a associate’s revenue and any financial savings you will have
- Whether or not different adults or youngsters reside with you
It’s additionally all the time value checking whether or not you’re in the correct Council Tax band as this can have an effect on what you pay. Nevertheless, it’s value taking into consideration that this will enhance, too.
If somebody you reside with has a extreme psychological impairment (akin to dementia) or different situation, you could be eligible for an extra low cost. Converse to your native council to seek out out extra.
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Helpful Sources
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Extra Debt Recommendation
Getting out of Council Tax arrears is only one step to managing your money owed. Learn these articles subsequent to seek out extra methods to beat your debt and ensure cash worries don’t get you down.