Abolish imprisonment as a penalty for non-payment of Council Tax.
- Parliament:
- 2017–19
- Signatures:
- 12,718
- Responded:
- 8 Oct 2019
The petition
I was shocked to learn that hundreds of people a year are sent to prison for non-payment of council tax, often because the law is wrongly applied by magistrates, up and down the country.
This affects the poorest in society and often women, left with unmanageable debts. The wealthy are unaffected.
Changes in benefits, including the introduction of Universal Credit, have made many of the poorest in society liable for Council Tax for the first time.
Many just cannot afford to pay; often due to health issues or changes in circumstances, such as separation or divorce.
The wealthy, when unable to pay Income, Capital Gains or Corporation Tax, due to a change in circumstances, are NEVER sent to prison for non-payment.
Council tax should be no different.
It should not be one law for the rich.
The government's response
Committal to prison for non-payment of council tax can only occur where the court is satisfied that the debt is due to the wilful refusal or culpable neglect of the liable individual.
Every year, councils issue nearly 24 million council tax bills to help fund key local services, from adult social care and children’s services, to refuse collections and leisure facilities. Uncollected tax means less money for services and higher bills for residents who do pay on time.
However, imprisonment should only ever be the last resort for non-payment of council tax. Local authorities should consider carefully the reasons for non-payment before seeking a committal warrant from the magistrates’ court, which can only issue a warrant if it is satisfied that the reason for non-payment is wilful refusal or culpable neglect. Committal is not appropriate unless the court is satisfied that the reason for non-payment meets these strict tests.
As the Local Government Minister announced in April this year, the Government wants to bring in a more effective council tax collection system which treats people more fairly, while ensuring the money required to fund public services is collected. It recognises consideration of personal circumstances can help a person’s financial recovery. The Ministry of Housing, Communities and Local Government has been engaging with charities, debt advice organisations and local authorities to gather evidence on current practice and on possible changes to improve council tax collection.
There all already a wide range of discounts and exemptions to help people who might otherwise struggle to pay. In particular, every local authority must have a council tax reduction scheme to provide support to people who might otherwise have difficulty paying their bill. As a result, many householders either receive a greatly reduced bill or, for example in the case of pensioners with limited savings, do not need to pay any council tax at all.