Modernising & improving the administration of council tax
Modernising & improving the administration of council tax - Citizens Advice Consultation Response
Last year Citizens Advice helped more than 165,000 people with a council tax issue in England. This includes around 80,000 people who needed help with council tax arrears, alongside over 90,000 people who we helped with a council tax reduction.
The data gathered from these interactions gives us a rich understanding of the issues people encounter when it comes to the administration and enforcement of council tax. We also see significant variation in practices within different areas, resulting in a complex postcode lottery when it comes to the way individuals are treated and the support available to them.
We have been drawing attention to problems with council tax debt enforcement for a number of years. People who are already struggling often face harsh practices that make their debt problems worse rather than helping them get back on their feet. This includes rapidly escalating and spiralling debt, with people becoming liable for their full annual council tax bill just 7 days after a reminder notice. We also see people facing high fees for liability orders which results in debt heaped on top of debt, making it harder for people to pay their arrears.
We’re therefore pleased to see both of these issues within the focus of the government’s consultation on modernising and improving council tax. Our full response to this consultation can be found in the attached document.
Alongside extending the time period before full liability applies and capping liability orders, we’re also calling for the government to:
Provide greater flexibility for people to arrange repayment plans that are genuinely affordable.
Uprate the income thresholds for attachment of earnings, to ensure that people aren’t being plunged into further hardship when repaying their council tax arrears.
Take action to reduce the use of bailiffs, including exempting households in receipt of Council Tax Support from this enforcement approach.
Introduce a statutory pre-action protocol which sets out steps councils are required to follow before making an application for a liability order, to embed consistent support across the county.
Abolish the power to commit people to prison for non-payment of council tax in England.
Reduce the postcode lottery in Council Tax Support, by removing minimum payments and band caps.