Charges for Unpaid Council Tax 'Push People Further Into Debt'

The Citizens Advice charity investigated debt collection practices at English councils and found that some add extra charges to debt, send in bailiffs and take court action against residents before they try to arrange manageable repayment plans with them.

This makes it harder for those in debt to pay it off – and, ironically, can also mean councils face a longer wait to collect the money they're owed.

In one case a £27 debt rose to £417 because the council added fees for calling bailiffs and obtaining a court order.

Councils sometimes force those who've missed a monthly council tax instalment to pay the remaining annual cost upfront – a practice the charity wants to stop. It's also calling for more councils to offer debtors affordable repayment plans.

In a survey of 1,000 people with experience of council tax debt, over half said the council's actions made it harder to clear their debts.

Source: Money Savings Expert