Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 11
11
Not Addressed
Paragraph: 63
Require local authorities to exhaust alternatives before using enforcement agents for council tax arrears.
Recommendation
The use of enforcement agents to collect unpaid council tax should always be a last resort, so we were pleased to hear that many councils and debt collectors engage with residents to collect arrears without needing to take enforcement action, and that some have a policy of never using agents against those in receipt of council tax support. We accept enforcement agents will sometimes be needed, in the case of those who wilfully refuse to pay, but it can never be justified in the case of those who genuinely cannot afford to pay. We urge the Government to direct local authorities to give it extra careful consideration before using enforcement agents against those in receipt of council tax support and in call cases to demonstrate they have exhausted alternative collection methods before resorting to enforcement agents.
Government Response Summary
The government's response outlines existing collection processes and councils' flexibility but does not commit to directing local authorities on the careful consideration or exhaustion of alternative methods before using enforcement agents, particularly for those receiving council tax support.
Paragraph Reference:
63
Government Response
Not Addressed
HM Government
Not Addressed
The Government notes the Committee’s views on introducing a statutory code of practice. There is a clear structure in place for councils when administering the collection of council tax. The current process in place means that the resident will receive at least three statutory communications before enforcement action can be taken. Under this framework a resident will receive a reminder and/or final notice for payment, court summons, and notification that the liability order has been granted; providing the resident with opportunities to get in touch with the council before and after a missed payment to discuss their circumstances. Furthermore, the statutory framework enables councils to consider whether to agree alternative repayment arrangements and assess whether the resident is entitled to, or in receipt of, council tax discounts or reductions when determining next steps for the collection of outstanding council tax bills. Councils are free to take additional steps before moving to enforcement action. For example, several councils have already chosen to sign up to the “collection of council tax arrears good practice protocol”, published by Citizen Advice in collaboration with the Local Government Association. The protocol includes steps councils can take to offer flexible payment arrangements and highlights that recovery actions should be referred to councils where vulnerability has been identified. There is flexibility in the system for payment. Payment of council tax is usually apportioned into ten monthly instalments across the financial year. Residents have a legal right to request payments are made over 12 months instead of ten. There is no legal requirement that the tax must be collected in-year, however timely payments and collections are clearly preferable to avoid households dealing with multiple years of council tax charges. However, there may be situations where a council decides that it is more appropriate to agree a longer term of repayment, which can be more than one financial year. The Government supports councils in offering this flexibility where they consider circumstances to be appropriate.