WIREDGOV

A new report from the Institute for Fiscal Studies, out today, highlights how introducing substantial minimum council tax payments led to increases of 30–40% in the number of people seeking advice from Citizens Advice Bureaux (CAB) about council tax debt in July–September 2013.

Citizens Advice Chief Executive Gillian Guy said:

“The localisation of council tax support has thrown household budgets into disarray as people try to find extra money to cover the cost of paying council tax for the first time.   The impact of these changes was immediately evident as 37,000 people sought online help from Citizens Advice about council tax in April 2013 - 87% higher than the same period in 2012.

“People are increasingly worried about how they will cope with rising costs.  Paying for council tax for the first time, or a greater proportion of it, adds to price hikes in energy, food, travel and housing.  It is very difficult for some to make ends meet when costs keep going up and their income remains the same.

“The knock-on effect is not just a tighter budget and severe cut backs.  Some people who struggle keep up with their council tax bill could find the bailiffs knocking at the door.  Evidence from Citizens Advice has found the bailiff industry to be riddled with appalling practices as some threaten to use force to get into properties and others ramp up fees by charging for visits they never made.

“It’s very important local authorities understand the financial pressures many people in their area will be under and reflect on the suitability of their local support schemes accordingly.”

Citizens Advice Bureaux helped 16,905 people who had bailiffs enforcing their council tax debt between December 2012 and November 2013.  Figures released in December reveal how two thirds of councils, who responded to a Freedom of information request from Citizens Advice, charged more than £50 for a liability order.  When councils pass debts to a bailiff they must first obtain a liability order from court, the charity found a huge variation in the fees authorities charged with some adding up to £126 to a person’s council tax debt.

Citizens Advice

Notes to editors

1. The IFS Report “Council Tax Support Schemes in England: What Did Local  Authorities Choose, and with What Effects?” is due to be published at 00.01 on Tuesday 21 January 2014 and will be available at www.ifs.org.uk. This report, funded by the Economic and Social Research Council (ESRC), analyses Citizens Advice data on the number of people seeking advice on different topics in each local authority. For an embargoed copy, please contact Bonnie Brimstone at IFS: bonnie_b@ifs.org.uk / 02072914818.
2. This year the Citizens Advice service celebrates its 75th anniversary. We’ve planned a year of activity running from January to December 2014.  Contact the press office to find out more.
3. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
4. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
5. To find your local bureau in England and Wales, visit www.citizensadvice.org.uk. You can also get advice online at www.adviceguide.org.uk
6. You can get consumer advice from the Citizens Advice consumer service on 08454 04 05 06 or 08454 04 05 05 for Welsh language speakers
7. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.6 million problems from April 2012 to March 2013. For full 2012/2013 service statistics see our quarterly publication Advice trends
8. Citizens Advice service staff are supported by more than 22,000 trained volunteers, working at over 3,000 service outlets across England and Wales.