Council tax debts – How struggling households can reduce bill to £0 | Personal Finance | Finance
Struggling households have been advised they can claim big discounts on Council Tax – even reducing it to zero.
Details have emerged in the wake of evidence that arrears have risen to £6 billion a year – two thirds more than before the pandemic.
At the same time as many as 1.3 million households are struggling to pay Council Tax this year on the back of big increases by local authorities.
Details were published by the Centre for Social Justice (CSJ) who warned that the heavy handed pursuit of people who cannot afford to pay is causing real distress.
Its head of debt, Matthew Greenwood, said: “The further steep rise in council tax arrears to a historic high of £6bn is yet more evidence that in many cases, the process of collection is failing local authorities and taxpayers alike.”
He continued: “Some people won’t pay their council tax even though they have the money, and they should face the full force of the law.
“But our evidence shows that the majority of non-payers are unable to meet their commitments and the often harsh repayment methods used by many local authorities are making repayment rates worse, not better.
“Adopting a more proportionate collection system would drive up the amount of money brought in by councils in the long term.”
He said there is a need to offer greater protection for vulnerable households when things go wrong and they are chased for arrears.
Households on a low income can apply for Council Tax Reduction, which is sometimes called Council Tax Support).
The government said: “You could be eligible if you’re on a low income or claim benefits. Your bill could be reduced by up to 100 percent.
“You can apply if you own your home, rent, are unemployed or working.”
What you can get depends on:
where you live – each council runs its own scheme
your circumstances (for example income, number of children, benefits, residency status)
your household income – this includes savings, pensions and your partner’s income
The new Labour Party government stated: “You could be eligible if you’re on a low income or claim benefits. Your bill could be reduced by up to 100 per cent. You can apply if you own your home, rent, are unemployed or working.
Details on how to make a claim can be found here.
