Call to cancel threat of prison for council tax non-payment

Some local authorities refer to the threat of prison in their first letter to people who have missed a council tax payment, a debt charity has said.

Ahead of council tax rises for millions of people this April, StepChange has called for an end to imprisonment and "unsympathetic or oversimplified messaging" over non-payment.

Only four people have gone to prison for failing to pay council tax since 2020, it said, so highlighting the sanction was counterproductive when writing to those who had not been able to pay.

The Local Government Association (LGA), which represents councils, said authorities "strive to recover unpaid tax as sympathetically as possible" but it was their duty to collect it.

The new report by StepChange, which gathered freedom of information responses from councils, found that messaging and policy over non-payment varied considerably.

The charity said it was vital for local authorities to collect council tax to help pay for local services. However, threats following non-payment risked people ignoring letters and offers of help.

"Walking the tightrope of providing guidance to residents and recovering council tax arrears to fund essential local authority services is no doubt difficult," it said in its report called Clear, Fair, Understandable.

"Whilst necessary to recoup funds, it's fair to ask whether councils allow genuine room to repay in a way that does not cause hardship or deepen problem debt."

One man, who missed payments and wished to remain anonymous, told the charity he was already going without food to pay bills when he received a liability order from his council.

"As a disabled person, it left me feeling incredibly vulnerable when all I wanted was to be treated fairly and with compassion," he said.

Prison risk extremely rare

The final sanction of imprisonment for non-payment of council tax is only for cases of "wilful refusal" or "culpable neglect". It only operates in England, not Wales or Scotland.

Four people had gone to prison since 2020 and there had been 143 suspended sentences, StepChange said.

In responses to the charity, one in 20 local authorities mentioned the possibility of prison in the first letter to those who had missed one payment.

StepChange said this was counterproductive, scaring people who can't, rather than won't, pay.

Peter Tutton, director of policy, research, and public affairs at StepChange, said this "outdated" sanction should be removed.

Some 36% of council respondents in England and Wales made direct reference to debt recovery or enforcement action in the first letter after a missed payment, rising to 50% by the final letter.

StepChange also hit out at the use of red font in letters, but the charity's report highlighted what it regarded as more sensitive messaging from councils, such as one letter suggesting "don't worry, we can get you back on track".

The LGA, which represents councils across England and Wales, urged anyone struggling to pay their council tax to get in touch with their local authority for help and advice as soon as possible.

"Councils have a duty to their residents to collect taxes so important services, like caring for older and disabled people, protecting children, collecting bins and fixing roads are not affected," a spokesman said.

"They strive to recover unpaid tax as sympathetically as possible and to provide support to households at risk of financial exclusion or hardship."