Ministers considering plans to ease pressure on residents struggling to pay council tax
The Welsh Government is considering ways to help people who are struggling to pay their council tax bill on time.
The changes aim to help people from becoming trapped in cycles of persistent debts by improving engagement between councils and residents and making the collection process clearer.
Currently, missing a council tax payment means people can become liable for the full annual bill if they don’t pay within seven days of receiving a reminder.
Reminders
The requirements on councils for sending reminders and final notices are also considered to be unnecessarily complex.
The improvements being considered, which are under consultation, will give people more time to recover from unexpected financial setbacks, offer them the the chance to get advice and allow for improved communication between councils and residents.
Council tax provides funding of over £2.8 billion for local services including schools and social care.
The current system successfully collects over 96% of council tax routinely, and help is available for people struggling to meet their tax obligations.
Fairer
Cabinet Secretary for Finance and Welsh Language, Mark Drakeford, said: “We have delivered a number of improvements to council tax in Wales to make it fairer. Our latest proposed changes focus on the prevention of escalating debts, by providing local councils with more time to engage with people who have missed a payment, to understand their circumstances and offer support before going ahead with recovery action.
“I know councils want to help wherever possible, and we will spread the best practice we have seen through this fairer framework. This will help councils differentiate between people who are struggling and those who are persistently disengaging. A longer timeframe also allows households to recover from unexpected events or circumstances that may have contributed to their financial struggles.”
People struggling to pay council tax should contact their council and free advice services, available through the Welsh Government’s Single Advice Fund and Claim What’s Yours campaign, as early as possible to prevent spiralling debts.
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They could start by re-evaluating the basis on which it’s charged. It’s always been a dogs dinner and has been in need of review for decades.
How about a property tax based on the value?
Too simple?
That’s how it works in Ireland:
https://www.revenue.ie/en/property/local-property-tax/valuing-your-property/determining-lpt-charge.aspx
That would be great, we pay 1% of our property value per annum. We budget to pay as a priority, but it’s 10 percent of our income.
Should be based on household income. At present elderly pensioners are paying a higher proportion of their income based on the present antiquated system. Where is the fairness of a neighbour earning twice or three times the annual income but pay half or less council tax? Before we get it will be too complicated HMRC is linked into each LA and would be a simple algorithm to apply tax payments.