I couldn’t pay my council tax bill

Local authorities have been urged to stop their “aggressive” debt recovery methods as some families struggle to cope with this month’s council tax rises.

Widespread use of court action, threats of imprisonment from bailiffs and deductions to benefit money is causing misery for council tax bill payers in financial hardship, say charity leaders.

Debt charities called on the Labour Government to take steps to reign in overly forceful bailiffs and make sure any benefit deductions used to cover debts are affordable.

Leanne, a 36-year-old from south London who did not wish to share her surname, said she began receiving threatening letters from bailiffs in the spring of 2023, just over two months after she fell behind on her council tax payments.

“Seeing the words bailiff, reading things like they could enter my property and take things and that I could face imprisonment – it hit me hard,” the mother of two told The i Paper.

“It was horrible, very distressing – I found it traumatic,” she added. “The letters were incredibly intimidating, to the point where I stopped being able to open them and had to get my adult social worker to open them.”

Leanne, who suffers from anxiety and depression, had struggled to keep up with council tax payments during a mental health crisis due to serious health issues face by her youngest child.

Her council tax debt peaked at just under £2,000. Living on a low income and unable to pay, she agreed with her local authority in the summer of 2023 to have her universal credit payments deducted by £20 a month.

Leanne, who did not wish to name the council, says it will take several years to wipe the debt. But she is now getting the council tax reduction available to those on low incomes.

“The only option I had was to take money off my benefits. When you’re facing court action, there was no choice. It’s difficult to get by. I can’t really afford to have money taken off when it could be going to other things.”

She added: “There should be more time and support from the start of the process. To just say, ‘Pay it or the bailiffs will come’ – it’s a horrible way to deal with people. They should realise there are people with mental health issues that find this a traumatic experience.”

The total amount of outstanding council tax debt in England rose to £6bn last year, up from £5.5bn the year before.

Debt experts fear this month’s council tax rise will make the crisis even worse. The Government has allowed council chiefs in England to raise bills over 5 per cent, with some bringing in double-digit increases.

The StepChange debt charity said severe and rapid action taken by councils was “shocking” and was pushing “some of the most vulnerable deeper in to financial difficulty”.

After missing a single payment, local authorities can ask for repayment of a full year’s bill. Councils in England and Wales can then take court action to get a liability order. This allows them to use bailiffs to reclaim the debt.

The i Paper revealed last month how councils were increasingly using the threat of prison against people in debt – despite the fact it is rarely enforced by the courts.

The Department for Work and Pensions (DWP) can also take universal credit money away from those in debt and give it to councils and other third parties like utility firms.

The number of universal credit claimants who had money deducted to recover arrears rose from 2.3 million in 2023 to 2.7 million last year, according to the latest government statistics.

Debt support charities say deductions can help some manage their finances, but warned they can also can often tip people in to financial hardship.

The DWP had been able to deduct up to 25 per cent of someone’s universal credit, but the level was reduced to 15 per cent earlier this month.

The Money and Mental Health Policy Institute called on councils to slow down their debt enforcement, so residents have at least three to six months before the demand that a full year’s bill is repaid.

“We want to see an end to aggressive and rapidly escalating council tax debt collection practices,” said Conor D’Arcy, the institute’s deputy chief executive.

Charities also urged the Government to bring in statutory regulation of the bailiff sector and take steps to make sure deductions do not push claimants into poverty.

“StepChange research shows that deductions are unaffordable and cause hardship for the vast majority of those affected,” said Adam Butler, StepChange’s public policy manager.

“We would urge councils and the DWP to only use deductions when it is clear these are suitable and affordable for the individual and be prepared to offer better support – including repayment breaks – for people who cannot afford to repay,” said Grace Brownfield, head of influencing at the Money Advice Trust.

A Local Government Association spokesperson said councils “only move to debt enforcement as a last resort” and said benefit deductions “can be an effective method for residents to repay debt over time”.

They added: “It is vital that anyone who is unable to afford their bills, or who is at risk of financial hardship, contacts their council as soon as possible to access help and agree an affordable repayment plan.”

The Government has been approached for comment.