The Children's Society estimates that 7,204 children living in 4,158 families have faced council tax debt in the Medway Towns. Last year, an estimated 1.3 million bailiff referrals were made across the southeast. Council tax arrears can be a particular problem for families already struggling to maintain the everyday costs of supporting children.
Could the Portfolio Holder reassure me that the collection methods used by Medway Council recognises the vulnerability that families with children face if they fall behind with their bills and sufficient support and advice is provided to families struggling with council tax debt to help them get safely back on their feet?
Minutes:
“The Children's Society estimates that 7,204 children living in 4,158 families have faced council tax debt in the Medway Towns. Last year, an estimated 1.3 million bailiff referrals were made across the southeast. Council tax arrears can be a particular problem for families already struggling to maintain the everyday costs of supporting children.
Could the Portfolio Holder reassure me that the collection methods used by Medway Council recognises the vulnerability that families with children face if they fall behind with their bills and sufficient support and advice is provided to families struggling with council tax debt to help them get safely back on their feet?”
Councillor Jarrett stated that the Council operated a council tax reduction scheme for those on low incomes which would contribute up to a maximum 75% of the council tax bill. The Council also operated a discretionary hardship relief for individuals who still struggled to pay despite the reduction scheme. Any taxpayer who presented themselves as struggling to meet the council tax bill would be signposted to these schemes and/or any other discounts or exemptions that may be applicable.
During the course of the last financial year, the recovery section had formed a partnership with Stepchange and again any taxpayer who still remained in difficulty either through hardship or lack of budgeting skills and had received a summons was referred to them for advice. This year officers had been looking to introduce this process earlier in the recovery process, whereby referrals could be made at reminder or final notice stage.
The use of enforcement agents was seen as a choice of last resort and would only be taken where all other alternatives had been unsuccessful in either recovering the debt or obtaining contact with the taxpayer. The enforcement agents used by the Council also employed Welfare Officers so that vulnerable cases could be given relevant advice and help.
If the debtor had young children and severe social deprivation was evident, the enforcement agent must seek guidance from the Council before continuing action. If the enforcement agent called at a property and only children were present he would withdraw immediately.
Supplementary question
Councillor Price asked whether the Portfolio Holder would join him in asking that the recommendations from the recent Children Society report called the ‘Wolf at the Door’ that would work to protect children from debt collection practices go on to the work programme for Overview and Scrutiny and then to Cabinet after 7 May 2015.
Councillor Jarrett stated that the work programme for Overview and Scrutiny was a matter for them but he was sure that all Members would agree with the premise of what Councillor Price was saying. He stated that these were very difficult financial times brought about by the failure of the last Labour Government to manage the economy properly. The Conservative Party was committed to solving the financial problems of the country.
He stated that the Council would do all it could to help vulnerable people as it did every year at budget setting and Councillor Price knew that only too well because he never supported those initiatives.