Debt collection practices 'having a devastating impact on vulnerable people', national charity says...

Hartlepool Borough Councils being accused of deliberately penalising the vulnerable in its alleged 'aggressive debt recovery tactics

National Debt Charity Calling for Urgent Reform of Council Tax Support, Amidst Unprecedented Debt Crisis facing Vulnerable Households....

26th December 2024

A leading debt charity is calling upon the government asking for 'immediate reform' of the Council Tax Support system, highlighting the devastating impact aggressive enforcement tactics by some local councils is having on vulnerable households. The charity warns that current practices are plunging struggling families into deeper financial hardship, exacerbating an already dire situation, as many local councils across the country get set to hike council tax bills in April 2025. .

Conveyor Belt Justice against the vulnerable

Since the introduction of Local Council Tax Support (LCTS) just over a decade ago, Council Tax enforcement has been increasingly targeting vulnerable households where their incomes are already being consumed by other priority debts such as rent shortfalls etc, However, following the abolition of the old-style Council Tax Benefit under David Cameron’s Conservative government, critics claim the new system enables "conveyor belt justice," with mass hearings being held in the county courts targeting residents increasingly unable to pay the vastly inflated bills being demanded of them by local councils. These secretive court proceedings, it is alleged, amount to a postcode lottery, leaving some of the most vulnerable without adequate support & in some cases, forcing households into the hands of loan sharks.

The Hartlepool Crisis

The number of people seeking support from Foodbanks is increasing, despite a change in national government.

In Hartlepool, the current LCTS system has been repeatedly criticised for deliberately penalising low-income residents and benefit claimants harshly if they miss even a single payment.

According to the debt charity StepChange, local residents can find themselves liable for their entire year’s Council Tax balance after just one missed payment, rapidly leading to enforcement action being taken. The recovery process typically involves enforcement agents—commonly known as bailiffs—or in the vast majority of cases, automatic deductions being taken from a persons Universal Credit, with up to 20% of a claimant’s income being taken directly to pay local councils, often pushing people further into debt and. .

StepChange also reports a sharp increase in bailiff visits to households in the region, with debts frequently being referred back to councils after it’s determined that many debtors simply have no assets to repay & repayment plans frequently being defaulted due to the households financial circumstances.

First-Hand Accounts from the Frontline

Speaking to The Big Issue, a StepChange representative reflected on the consequences of decentralising council tax support back in 2013.

“Many clients who had previously been exempt from paying council tax due to disability or employment status suddenly found themselves required to contribute to a bill they couldn’t afford. I recall a client, a full-time carer for his elderly mother, who was forced to place her in a care home because he couldn’t manage the added financial burden. Ironically, this cost the local authority even more.”

The representative also highlighted the lack of empathy and flexibility in council enforcement tactics:

“Rigid adherence to deadlines, inaccessible helplines, and poorly trained call handlers leave clients feeling unheard and hopeless. Many don’t bother filing complaints because they believe their local council won’t listen.”

Local Advocacy and the Fight for Reform

James Barker, founder of Hartlepool Borough Council Exposed, has been a vocal advocate for reform for Council Tax Support for nearly a decade, he said :

“Hartlepool Borough Councils Efforts to recover substantial sums from the towns poorest residents has only fuelled public distrust in the council further. The council’s approach has created a culture of 'disengagement' and 'mistrust'. In 2023, Hartlepool Borough Council was declared an authority of no public confidence—a reflection of the harm caused by its punitive & discriminatory policies towards vulnerable local residents.”

Mr Barker draws stark comparisons between Hartlepool and neighbouring County Durham, where residents in identical financial situations can receive 100% council tax support. In contrast, Hartlepool’s system covers only 90%, leaving vulnerable residents to face aggressive recovery tactics.

“Despite years of pressure, Hartlepool Borough Councils refusal to match the support offered elsewhere, whilst shelling out thousands of pounds in pay rises to its unelected directors means the most vulnerable—carers, disabled individuals, and those with learning difficulties—are dragged before courtrooms, some of them visibly ill-equipped to understand the circumstances before them.”

A National Shame...

The charity, and advocates like Mr Barker argue that the current LCTS system is a national shame & can no longer be allowed to continue. . They call for standardising council tax support across the entire UK to ensure 100% relief is available for low-income households, ending the postcode lottery of support and protecting the most vulnerable.

“LCTS reform is long overdue,” Mr Barker concludes. “By ensuring fair, nationwide standards, we can bring an end to this decades worth of injustice and restore dignity to those who need it most.”

As the number of vulnerable households in crisis continues to grow, the government faces mounting pressure to act. Without change, advocates warn, the consequences for individuals and communities will only worsen.