SHARP RISE IN COUNCIL TAX ARREARS CASES WITH MORE RENTERS STRUGGLING TO MEET PAYMENTS

FIRST PUBLISHED BY: THIS IS MONEY

DEBT BURDEN: FOR THE FIRST TIME MORE RENTERS THAN HOMEOWNERS CONTACTED THE CHARITY

The number of people falling behind with their Council Tax payments rose sharply last year as the financial pressure on households increased.  Despite Council Tax freezes across England, nearly 17,000 people contacted debt charity Consumer Credit Counselling Service (CCCS) for help with their arrears, up from 13,353 in 2010, a 27 per cent increase.

The average amount owed also increased by £42, from £675 in 2010 to £717 last year. Hardest hit have been those in rented accommodation. There has been huge demand in the rental market as many people can't currently afford the step up onto the property ladder. This has led to significant rises in rent levels as landlords take advantage. In contrast, many home-owners have seen mortgage repayments remain at manageable levels due to the record-low base rate - although lenders have issued a swathe of recent hikes.

IN ARREARS? WHAT CAN HAPPEN:

• Failing to pay Council Tax can lead to legal action to recover the money. A court can then order the  money to be deducted directly from salary payments or benefits.
• In worst case scenarios bailiffs are called, and the debtor declared bankrupt.
• But most councils will arrange for people to take on lower monthly payments over a longer period of time in order to help them.
• Consequently, for the first time more renters than home-owners contacted the charity about arrears - a total of 8,841 sought advice, up from 6,084.

CCCS director of external affairs Delroy Corinaldi said: 'The financial squeeze is causing more and more households to fall behind with their 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 their Council Tax 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.'

BEEN PAYING TOO MUCH COUNCIL TAX?

If your house is in the wrong Council Tax band, you may be entitled to cut your bill and win a refund windfall.  Since Council Tax bands were created in 1993, one in 20 homes have been found to be in the wrong one. A home incorrectly placed in Band E rather than D, for example, has been paying 22.2 per cent too much since 1993. On average figures, the overpayment would be up to £281.50 for the last year and around £2,500 over the whole period.

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


ARE YOU PAYING TOO MUCH COUNCIL TAX - CHECK HERE?