CASES OF COUNCIL TAX ARREARS UP 30PC

FIRST PUBLISHED BY: THE TELEGRAPH 

THE COUNCIL TAX TRAP

Rising rents, higher unemployment and the financial squeeze have led to a sharp increase in the number of people falling into arrears on their Council Tax, despite most English councils freezing this housing charge for the past two years.

Debt charities report that they have seen a 27pc increase in the number of people contacting it for help with Council Tax arrears. In 2010 the Consumer Credit Counselling Service (CCCS) had just over 13,000 cases, which rose to almost 17,000 cases the following year. Over the period the size of money owed to the council rose from £675 to £717.

CCCS said much of this rise had been fuelled by the worsening financial position of renters. For the first time the charity said it had more queries from those in rented accommodation that from those that own their own home. While many homeowners have been cushioned by low interest rates, which have helped keep mortgage repayments manageable, those who rent have faced steep increases in their outgoings. With fewer first-time buyers able to get on the housing ladder – thanks to tighter lending restrictions – demand for rented property has helped to push up the monthly rental costs significantly.

Delroy Corinaldi, a spokesman for CCCS said he expected this problem to get significantly worse in future. "The financial squeeze is causing more and more householders to fall behind with Council Tax bills, and this is a problem we expect to get worse over the coming year. "Council Tax is a priority debt and non-payment of it can have very serious consequences.

Anyone who is struggling to keep up with these bills should contact their council to discuss the problem, and check that they are receiving any discounts or rebates to which they may be entitled. If you are struggling to cope you should also seek free advice from a debt charity like CCCS as early as possible." Failing to pay your Council Tax can lead to a legal action to recover costs, and in the worst case scenario bailiffs being called, and the debtor being declared bankrupt. 

READ WHAT: ERIC PICKLES ‘SECRETARY OF STATE’ SAYS ABOUT OVER-CHARGED COUNCIL TAX.

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