Charities call for end to 'cruel and archaic' practice of jailing people who can’t pay council tax
23 January 2025, 02:59
Debt help and mental health charities have written a letter to the government, calling for an end to the "cruel and archaic" threat of jail for those who can't pay council tax.
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The charities say the threat of imprisonment is often exaggerated, and used as a scare tactic on vulnerable groups.
They have written to the government, calling for "the removal of the unjustified sanction of imprisonment for non-payment of council tax in England" to be set in motion.
The letter says: "Women, single parents, and those living with mental health problems disproportionately bear the brunt of this escalating affordability crisis.
"We've heard from many who, while trying to keep up with council tax, have missed other priority payments, taken on extra borrowing and cut back on essentials.
"Yet instead of being met with empathy, those who fall behind on council tax face a system which is at best dated - and at worst, dangerous."
StepChange Debt Charity, Christians Against Poverty, the Money and Mental Health Policy Institute and the Money Advice Trust are among those who have put their names to the letter.
It coincides with the release of research commissioned by StepChange, indicating that nearly a quarter (23%) of adults are worried about their ability to pay council tax over the next six months.
Nearly a third (31%) of people surveyed meanwhile are concerned about their ability to pay energy bills.
A third (34%) of new StepChange clients responsible for paying council tax were behind on this bill in December 2024, at an average amount of £1,937.
The letter says England is out of step with the rest of the UK.
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It says: "England is an anomaly as the only country in the UK where the option to commit people to prison for non-payment of council tax remains possible.
"In Wales, this sanction was revoked in 2019, with its 'outdated and disproportionate' nature recognised by the Welsh Government.
"Crucially, statistical analysis undertaken for the Welsh Government by Policy in Practice, together with findings from previous research, indicates that the removal of the sanction has not affected council tax collection rates in Wales."
Richard Lane, chief client officer at StepChange, said: "Current regulations around imprisonment are outdated at best and draconian at worst.
"That someone who has fallen behind on their council tax bills - so often a symptom of deep-rooted financial difficulty - can face the prospect of prison is unfathomable in the 21st century.
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"Threats of imprisonment would not fly in the consumer credit sector, and it should not in local government debt collection.
"If the Government wants to introduce an easy, low-cost, and equitable policy to protect those in financial difficulty, then removing this rule is a good way to support the most vulnerable and signal a priority of fairness."
Juliette Flach, policy and public affairs manager at Christians Against Poverty, said: "With nearly half of our clients struggling to afford basic necessities, low wages and benefit levels are clearly impacting millions.
"Threatening imprisonment for council tax debt is both unjust and ineffective in this context. We need a more compassionate system that supports, not punishes, those trapped in the vicious cycle of debt and poverty."
Helen Undy, chief executive of the Money and Mental Health Policy Institute, said: "The Government should put an end to this cruel and archaic process, as it destroys lives and does little to help councils recoup money.
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"Even the threat of prison can have a devastating psychological impact for people who simply can't afford their council tax bill, and are already under huge financial and mental strain. We urge the Government to act now before more lives are needlessly ruined."
Grace Brownfield, head of influencing and communications at Money Advice Trust - the charity that runs National Debtline, said: "It can never be right that people facing financial difficulty are threatened with imprisonment.
"The focus instead should be on providing meaningful support to people struggling to pay their council tax bills and helping them get out of debt safely and affordably."
Councillor Pete Marland, chairman of the Local Government Association's Resources Board, said: "Councils know how difficult the rising cost of living is for so many people and strive to recover unpaid tax as sympathetically as possible.
"Bailiffs should only ever be used as a last resort and before it gets to that stage, people will have been encouraged by their council to apply for financial support.
"One way to make the process easier would be to remove the requirement for the entire annual sum to become payable if an instalment is missed, giving households and councils greater flexibility.
"Local welfare schemes run by councils, including council tax relief and the Household Support Fund, are also available alongside targeted government help. Rising demand means this may only offer short-term relief to struggling households, amid an ongoing cost-of-living crisis and continuing funding pressures.
"Anyone having trouble paying their council bills should get in touch with their local authority for financial help and advice as soon as possible."
A Ministry of Housing, Communities and Local Government (MHCLG) spokesperson said: "The law is clear that imprisonment should only ever be the last resort for non-payment of council tax, and these powers cannot be used where an individual is unable to pay their council tax.
"We expect councils to be proportionate and sympathetic in the actions they take, and we will continue to keep this policy under review."
