Tagged: council tax reduction scheme

Council Tax Debt Problems Soar 20% In A Year

Council tax debt has overtaken credit cards as the most common form of debt requiring advice and support, says a leading charity.

The Citizens Advice Bureau (CAB) says it expects to help more than 191,000 people struggling to pay Council Tax in 2014/15 – up 20% on the previous year.

And according to a report from the CAB, rising rents could result in up to 122,800 people requiring help with rental debts by the end of March 2015.

The Government abolished Council Tax Benefit at the end of March 2013, meaning that some of the poorest people are having to pay for the very first time.

The move has resulted in a postcode lottery, with benefit claimants and low-income households paying more in some areas than others, depending upon each local authority’s Council Tax Reduction scheme.

A growing proportion of people are approaching the CAB for help and advice on paying rent, council tax, water and fuel debts. Meanwhile, financial issues related to credit cards, mortgages and unsecured personal loans have declined.

While more households are struggling with Council Tax and housing costs, debts resulting from credit cards are expected to fall by 12% in 2014/15 – exposing the ‘changing face of household debt’.

The mainstream credit problems of the post-2008 period have turned into problems with priority debts, says the CAB.

Despite a recent fall in fuel and petrol prices, the CAB also highlights how households have had to endure a 210% rise in energy costs over the last 10 years.

The CAB highlights how the Office for Budget Responsibility expects household debt to soar to a record high of £2.43 trillion by 2019.

There has also been a significant rise in the amount of debt held by self-employed people – up 41% to £20,000. They now represent the highest percentage of people helped by the CAB at 29%.

Citizens Advice is carrying out a separate study about the challenges that self-employed people face.

Behind the self-employed come unemployed people, who have an average debt of £17,500. Pensioners come in a close third, with an average total debt of £17,200.

13% of CAB clients had ten debts or more.

Source – Welfare Weekly,  16 Feb 2015

http://www.welfareweekly.com/council-tax-debt-problems-soar-20-year/

Evictions begin as government starts grabbing your homes

Mike Sivier's blog

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It is easy to get caught up in headlines and forget that the Coalition’s benefit reforms mean people you know will lose their homes.

You know what happens then? PEOPLE YOU KNOW START LOSING THEIR HOMES.

Vox Political was warning the world about this back in 2012 – nearly two years ago – saying the bedroom tax would put people on the streets while homes go empty and warning about the ‘Poll Tax revival plan to take away your home’. It gives me no pleasure at all to report that I was right.

This week I heard about two cases in my Mid Wales town. You may think that isn’t many, but this is a town with a population of less than 5,000 – and I haven’t heard about every case.

The first involves a family that has been living in the same council house for more than 30 years…

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