More Financial Misery for Hartlepool Households As Council Tax Court Costs are Set to Rise...

Households already struggling with unaffordable Council Tax bills they can't afford set for more financial misery, as Hartlepool Borough Council gets set to increase the costs they charge for those taken to court simply for struggling to pay their Household Council Tax Bill.

19th November 2024

Hartlepool households, some of which are already said to be grappling with the cost-of-living crisis are bracing for yet another blow as the now Labour run Hartlepool Borough Council moves to hike up court costs for those who fall behind on their council tax payments.

A report heading to the council's Finance & Policy Committee next week outlines a proposal to increase the charges imposed on already struggling local taxpayers—a move that critics warn could spark legal challenges.

Currently, the council charges £85 in total for recovering unpaid council tax, broken down into £75 for the issuing of a Court summons and a further £10 for obtaining a liability order. However, these charges—last reviewed in 2019 and unchanged since 2010 before that—are set to rise significantly.

Under the new proposal, the total cost will increase to £125, representing a £40 hike. The changes allegedly include reducing summons fees to £50, while liability order costs will rise sharply to £75, in what the council claims is an effort to promote earlier action by debtors.

Concessions for Early Action

The council has suggested some mitigating measures to encourage compliance to pay what many have now deemed to be 'a poverty tax' on the poorest households, They include Wavering the Liability order costs if payment is made in full, a Direct Debit is established and maintained, or a debtor agrees to an Attachment of Benefits (AOB) or a similar arrangement exceeding the AOB amount. The council claims these measures will avoid penalising those already receiving benefits, but critics argue this doesn’t address the root issue of affordability & will only sink many vulnerable households even further into debt..

Legal Battles could be on the Horizon?

This proposed increase has reportedly sparked concerns among campaigners and legal experts, who accuse Hartlepool Borough Council of unfairly profiting from vulnerable households.

Questions are already being raised about whether the council’s stated costs reflect the actual expenses incurred in pursuing liability orders where its claimed Historically, councils across the UK have faced a number of legal challenges regarding over inflated liability order fees. One example being back in 2013, when the High Court ruled against Barnet Council, finding that it had unlawfully overcharged residents by inflating court costs beyond what the court believed was reasonable. Similarly, Lincoln Magistrates’ Court found that Wokingham Borough Council’s fees failed to represent the true administrative costs, ordering them to pay damages to scores of local residents.

Councils secret 'revenue generator' right off the backs of the poor critics claim....

Councils across the country have been accused of using liability order costs as 'a revenue generator' against some of the most poorest in society driving those already struggling further into debt..

Poverty and disability advocates have long alleged that councils nationwide are using court costs as a way to generate revenue, rather than simply recovering their expenses.

The now Labour Controlled Hartlepool Borough Council, recently declared an authority of no public confidence, could now face a similar backlash, with potential legal challenges looming. Critics claim the council risks plunging already struggling households deeper into debt while exposing itself to costly court disputes.

A Community Already Struggling...

The numbers of people in Hartlepool visiting their local Foodbank is at the highest recorded levels, as locals claim they're 'sinking' under debts they simply cannot afford, one of those being Council Tax

For many Hartlepool residents, this development feels like a tipping point. Campaigners argue that rising council tax bills, combined with punitive court costs, push low-income households further below the poverty line in a town already said to be seeing epidemic levels of poverty & destitution.

Disability rights groups, anti-poverty advocates, and legal experts are said to be calling for a transparent breakdown of costs, arguing that only the actual administrative expenses should be recoverable being that of the alleged 50p it costs to undertake court action against those struggling to pay their Council Tax bills, as its claimed the vast majority of the recovery process & court action is 'automated' via a computer spreadsheet.

With household budgets stretched to breaking point, the council’s decision to increase charges risks eroding trust further and could prompt widespread opposition. For those in financial hardship, the looming changes represent yet another hurdle for struggling families to make whilst grappling with a cost of living crisis that's already pushed many households to the brink, only for Hartlepool Borough Council to pile even more misery onto vulnerable residents.