Selasa, 12 Juni 2012

Sharp rise in council tax arrears cases with more renters struggling to meet payments

Sharp rise in council tax arrears cases with more renters struggling to meet payments

By Harry Glass

PUBLISHED: 04:02 EST, 12 June 2012 | UPDATED: 06:10 EST, 12 June 2012

Debt burden: For the first time more renters than homeowners contacted the charity

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 homeowners 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 homeowners 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.

Appeals can be made online at the Valuation Office Agency, in England, or the Scottish Assessors Association, in Scotland. Alternatively, home owners can write to their local authority's listing officer or assessor.

See our f ull guide here.

Here's what other readers have said. Why not add your thoughts, or debate this issue live on our message boards.

The comments below have not been moderated.

  • Newest
  • Oldest
  • Best rated
  • Worst rated

Big hikes planned for next year after this 2 year freeze gimmick. People that are paying coucil tax are having a hidden extra to pay to help make up the short fall for those that can"t or won"t pay. Disgusting unfair burden of a tax.

Report abuse

if everyone paid something, it would not be so high for those who have to pay. My son has a one room flat the size of a cupboard and yet pays £110 a month to have a bin emptied fortnightly, it is hardly compatible with his £800 a month wages either.

Report abuse

I contacted my local council to enquire about paying my council of £200 per month over 12 months instead of 10. They said if I did I would be declared as in arrears and receive a red letter each month and may be prevented from paying by direct debit in future years. All my other bills are paid over 12 months why not council tax. My council said it was a government ruling.

Report abuse

IT IS ALL ABOUT TO COLLAPSE, THE LEMONS ARE DRY, ANYONE WHO PAYS THE UNFAIR COUNCIL TAX IS JUST PROLONGING THE PAIN OF THE OVER TAXED MASSES

Report abuse

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.

Diposting oleh di

Tidak ada komentar:

Posting Komentar

Langganan: Posting Komentar (Atom)