A TOWN hall is set to take thousands of residents to court over council tax arrears this week.
Southwark council has issued 9,000 summonses across the
borough – with 5,800 residents previously claiming a 100 per cent discount until
it was abolished in April.
The Government scrapped the council tax benefit (CTB) as part of its welfare reforms.
The 19,000 poorest households in Southwark had been exempt from charges.
The change was prompted by a 10 per cent cut in Whitehall funding to local authorities.
Under the replacement council tax reduction system (CTRS), working-age residents have to pay up to 15 per cent of their council tax bill.
On Friday, hundreds of people are expected to protest outside Camberwell Green Magistrates’ Court, where the court hearings will take place.
And the South London Press understands that, in some cases, court fees imposed on Friday will be more than the debt.
Charity Zacchaeus 2000 Trust (Z2K), organising the protest, has been advising residents hit by the council tax changes and other benefit cuts. It has previously represented similar cases in Lambeth and Brent boroughs.
Its chief executive Joanna Kennedy said: “The problem is that low-income households in receipt of council tax support aren’t amassing arrears because they won’t pay, but because they can’t.
When a Southwark resident is summonsed to court, £65 in fees is added to the debt – in some cases doubling the amount owed and pushing the taxpayer further into debt.
“This can quickly spiral out of control if bailiffs are used and the fees mount up.”
Last week, the Labour Party warned that 112 councils had issued more than 156,000 summonses across the country, potentially affecting 450,000 people.
Z2K has appealed to Southwark to change its stance and not drag vulnerable people through the courts.
Ms Kennedy added: “In some respects the decision by Southwark council to try to recoup these arrears through deductions to benefits rather than through punitive bailiff action is a positive one.
However, the problem is that benefits are already insufficient to cover the cost of living. If you reduce them even further, families will be forced to rely on food banks or pushed into the arms of payday lenders in order to get by.”
Councillor Richard Livingstone, cabinet member for finance, said court action was “a last resort”, but missed payments of £2.50 a week would add up to a “black hole”.
The council is already facing a budget gap of £23million for the 2014-15 year accounts.
He said: “Southwark has been the 11th hardest-hit council by government cuts across the whole country, and we know there are more severe cuts coming. If we wrote off the debt of those who haven’t paid their council tax, inevitably we would have to take money out of another squeezed council service.
“About three quarters of those having to pay council tax for the first time in Southwark have managed to pay their bills already, and we’re doing all we can to help those who are struggling, including offering financial assistance through our Southwark emergency support scheme and welfare hardship fund.”
South London Today
The Government scrapped the council tax benefit (CTB) as part of its welfare reforms.
The 19,000 poorest households in Southwark had been exempt from charges.
The change was prompted by a 10 per cent cut in Whitehall funding to local authorities.
Under the replacement council tax reduction system (CTRS), working-age residents have to pay up to 15 per cent of their council tax bill.
On Friday, hundreds of people are expected to protest outside Camberwell Green Magistrates’ Court, where the court hearings will take place.
And the South London Press understands that, in some cases, court fees imposed on Friday will be more than the debt.
Charity Zacchaeus 2000 Trust (Z2K), organising the protest, has been advising residents hit by the council tax changes and other benefit cuts. It has previously represented similar cases in Lambeth and Brent boroughs.
Its chief executive Joanna Kennedy said: “The problem is that low-income households in receipt of council tax support aren’t amassing arrears because they won’t pay, but because they can’t.
When a Southwark resident is summonsed to court, £65 in fees is added to the debt – in some cases doubling the amount owed and pushing the taxpayer further into debt.
“This can quickly spiral out of control if bailiffs are used and the fees mount up.”
Last week, the Labour Party warned that 112 councils had issued more than 156,000 summonses across the country, potentially affecting 450,000 people.
Z2K has appealed to Southwark to change its stance and not drag vulnerable people through the courts.
Ms Kennedy added: “In some respects the decision by Southwark council to try to recoup these arrears through deductions to benefits rather than through punitive bailiff action is a positive one.
However, the problem is that benefits are already insufficient to cover the cost of living. If you reduce them even further, families will be forced to rely on food banks or pushed into the arms of payday lenders in order to get by.”
Councillor Richard Livingstone, cabinet member for finance, said court action was “a last resort”, but missed payments of £2.50 a week would add up to a “black hole”.
The council is already facing a budget gap of £23million for the 2014-15 year accounts.
He said: “Southwark has been the 11th hardest-hit council by government cuts across the whole country, and we know there are more severe cuts coming. If we wrote off the debt of those who haven’t paid their council tax, inevitably we would have to take money out of another squeezed council service.
“About three quarters of those having to pay council tax for the first time in Southwark have managed to pay their bills already, and we’re doing all we can to help those who are struggling, including offering financial assistance through our Southwark emergency support scheme and welfare hardship fund.”
South London Today
