WIREDGOV

Responding to the Money Advice Trust and StepChange report on council tax arrears, Cllr Claire Kober, Resources Portfolio Holder at the Local Government Association, said: "Faced with growing funding pressures, councils are increasingly unable to plug the ever-widening gap between the money they receive to fund council tax support and they need to protect those on low incomes."

No one wants to ask those on the lowest incomes to pay more. Significant cuts to the money councils receive to look after the elderly, protect children, repair roads and collect bins, mean many have had little choice but to reduce council tax discounts for the working-age poor or low income families - who may have never paid council tax before – to avoid finding even more savings from spending on local services to meet the shortfall.

"Councils do have a duty to their residents to collect taxes so important services are not affected. But we realise that times are tough and councils do their best to protect those affected the most, whether through introducing hardship funds or taking a sympathetic and constructive approach to the way they collect unpaid tax.

"We have worked closely with Citizens Advice on a protocol for councils using bailiffs when recovering debts. It includes the need for fair collection and enforcement policies and the ability for councils to take back cases involving vulnerable families. We agree that bailiffs should only ever be used as a last resort. Before the situation reaches a stage where bailiffs are involved several letters should have been written, people should have been encouraged to apply for financial support, and efforts should be made to arrange new payment plans or to attach the debt to a salary.

"It is in everyone's interest to ensure those struggling to pay their council tax bills are set up on affordable and sustainable payment plans. However, there is always a risk that the longer a debtor goes on without paying, their repayment instalments will become even more difficult for them to manage and the debt will take longer to clear. That is why it would be vital for any breathing space to avoid the unintended consequence of adding any further financial pressure onto the debtor."

Related information: http://www.stepchange.org/Mediacentre/Pressreleases/RecordCouncilTaxarrearsproblems.aspx