The cross-party Levelling Up, Housing and Communities (LUHC) Committee has called on the Government to ensure local councils are not aggressively chasing Council Tax debt from those who can least afford it.
Published today, the LUHC Committee’s council tax collection report found that there were increasing pressures on local authority finances and on household budgets.
As a result, there were reported instances of local authorities adopting heavy-handed tactics to recover unpaid Council Tax.
The report called for the Government to take steps to ensure councils understand they are not required to demand immediate in full payment from individuals who are in arrears.
The report recommended that the Government change the law to state the principle that collection of Council Tax arrears should be based on a resident’s ability to pay.
Clive Betts, chair of the Levelling Up, Housing and Communities Committee, said: “The cost-of-living crisis is a real and everyday experience for many and the spectre of council tax arrears risks pushing some households over the edge.
“Some people may feel pushed into putting their council tax payments ahead of heating and eating – this is deeply concerning and highlights the need for local councils to act responsibly when trying to recover unpaid council tax.
“Councils are themselves under significant financial and service pressures, but councils should not be chasing arrears from individuals who can least afford it.
“Councils should not rush to escalate collection activity but consider the ability of the individual to pay, avoid causing distress, and signpost suitable debt advice.
“Enforcement action should absolutely be a matter of last resort. Heavy-handed tactics to recover council tax debt are not acceptable.
“The Government should stamp out the prospect of poor enforcement behaviour by considering the case for a statutory code for the enforcement agent industry.”
