Benefits claimants face spike in ‘aggressive and intimidating’ bailiffs over unpaid council tax

Cases involving bailiffs increasing in Hackney. Photograph: Hackney Community Law Centre

More than 1,200 benefits claimants in Hackney face the threat of bailiffs over unpaid council tax.

New figures from Hackney Council show its use of enforcement agents has increased by almost 10 per cent from 2015 in cases involving residents already receiving council tax support.

Joanna Kennedy, Chief Executive of anti-poverty charity Zacchaeus 2000 Trust (Z2K), said: “These figures demonstrate that thousands of low-income Hackney residents are simply unable to pay the council tax that is demanded of them.

“Most worrying is Hackney’s increasing use of bailiffs against these residents. Bailiffs have a track record of acting in an aggressive and intimidating manner and their substantial fees are added to a debt that already can’t be paid.

“Other authorities in London manage to collect council tax from claimants without recourse to bailiffs so there’s no reason Hackney can’t.”

“We have campaigned against cuts to council tax support in a number of London boroughs and call for all London authorities to reinstate 100 per cent council tax support.”

Cuts to local government budgets have led some councils to introduce minimum payments for working age residents, many of whom were previously exempt from paying council tax.

The Town Hall now demands all Hackney residents, regardless of income, pay at least 15 per cent of their council tax bill.

If someone claiming council tax support fails to pay, the council can issue a court summons and send bailiffs to recover the debt.

This year, there have been nearly one hundred extra cases involving enforcement officers in Hackney compared to 2015.

Over the past three years, Z2K has worked in conjunction with the Child Poverty Action Group (CPAG) to monitor the impact of the abolition of Council Tax Benefit in London.

Their latest joint report, Still Too Poor To Pay, is due to be published on 1 September.

The report is to offer recommendations to those in local government on how to mitigate the impact of council tax support schemes on hard-up Londoners.

Chief Executive of Child Poverty Action Group (CPAG) Alison Garnham said: “It is no wonder that so many council tax support claimants in Hackney are falling behind with their payments and having their arrears deducted from their benefits.

“A £3.80 per week deduction might not sound like much, but when you are already living below the breadline, it creates a big hole in your weekly budget.

“Across London claimants will have been forced to borrow from family or friends, or take out payday loans to stop bailiffs turning up at their door.

“Sadly, the use of bailiffs to collect council tax is increasing rather than falling in Hackney and elsewhere.

“Using bailiffs can prove short-sighted as the substantial fees they charge inflate the debt, making it even more difficult for hard-up households to repay.

“Also, any money collected by bailiffs goes to paying off their fees first – before the council sees a penny.

“In our view, councils should refrain from using bailiffs to recover debt and instead engage with debtors to understand the difficulties they face.”

Citizens Advice Hackney saw a 17 per cent jump in enquiries about council tax debt in the first quarter of this year compared to the same period last year.

A spokesperson for the charity said: “Recent welfare reform has meant that many residents now have a liability to find a percentage of their council tax from their income, which has not increased to take this into account.

“There can be great difficulties finding this amount as many have not claimed all in-work benefit entitlements.

“Citizens Advice Hackney continues to assist Hackney residents in all areas of debt management, including council tax arrears.

“We encourage anyone experiencing difficulties in paying their council tax to seek help and advice as soon as possible.”

Hackney Council told the Hackney Citizen it tries to assist residents at every point before issuing a court summons, using reminder letters, texts and advice on money management.

According to the council, it takes the same stance as many other local authorities in working to avoid taking residents to court.