Council Tax Debt Engagement Pilot
As part of a new pilot project, our Bureau is working collaboratively with Clackmannanshire Council to address the issue of council tax debt in the area.
What is Council Tax?
Council tax is a property-based tax which is charged on most domestic properties. Your council tax bill is calculated based on the value of the property. Your home will be assessed as being in a property valuation band (A-H) and this determines how much you pay. Band A is the lowest band, paying the lowest amount, and Band H is the highest band, paying the highest amount. The band is decided by the Assessor for Central Scotland based off the property’s market value as at the 1st of April 1991 and any new properties will be assessed based on how much your home would have been worth on the 1st of April 1991.
You can check your Council Tax Band here -> https://www.saa.gov.uk/
Water and Sewerage Charges
Your council tax bills also include charges for water and sewerage. This charge is set by Scottish Water. The Council is legally required to collect these charges but does not retain the income. If you receive a Council Tax reduction, this does not count towards your Water and Sewerage charges and you will still be liable for payment.
For more information about Water and Sewerage Charges, click here -> https://www.scottishwater.co.uk/Your-Home/Your-Charges/Your-Charges-2023-24
What happens if I miss a payment?
Clackmannanshire Council requires payments to be made on or before the 15th of the month, unless you’re paying by direct debit. If you don’t pay on or before the 15th, your account is classified as being in arrears. If this happens, you will be issued with a reminder notice to bring your payment up to date within 7 days. A maximum of only two reminder notices can be issued per financial year.
If you receive a reminder notice and do not pay within 7 days, you will lose the right to pay by instalments and a final notice will be issued requesting the full outstanding balance for the financial year to be paid within 14 days.
If the full outstanding balance is not paid and you have not contacted the Council to discuss your financial situation or to make an arrangement to pay, no further reminder notices will be issued and the debt will be recoverable by Summary Warrant proceedings. When your account becomes subject to these proceedings, there is a statutory penalty based on 10% of the outstanding balance. The debt will then either be passed to Stirling Park (the debt collection agency working on behalf of Clackmannanshire Council) or the Department for Work and Pensions (DWP) for direct deduction from your benefits. If the account is passed to Stirling Park, a payment arrangement should be made with them. Council Tax is a priority debt and failure to make payments could see your earnings being arrested bank account being arrested, and your debt increasing due to fees.
Discounts and Reductions
A range of discounts and reductions are available to help you with your Council Tax bill.
A 25% discount is available if there is only one adult living in the property, this is known as the Single Person’s Discount.
Some people are not counted when deciding how many adults are living in a property for the purposes of calculating Council Tax. This includes:
- Full-time Students
- Apprentices
- Long-term Hospital Patients
- People in Detention
- Some Carers
- Members of a Religious Community
- Those who have a Severe Mental Illness
A 10% discount is available for properties that are unoccupied but furnished or long-term empty. However, if a property is a second home there is no discount available.
If you are on a low income, unemployed or claiming benefits and have savings of less than £16,000, you may be eligible for a reduction on your Council Tax bill of up to 100%. Council Tax Reduction is not a discount and therefore you may be entitled to both.
You could pay less Council Tax if a disabled person lives in the property and needs: an extra room to meet their needs; an extra bathroom to meet their needs; or they need to use a wheelchair indoors. If you qualify, you will be charged for the property band below your actual band.
You may be entitled to Second Adult Rebate if you share your home with one or more other persons, aged 18 or over, and that person(s) is not paying your rent, is not your partner, does not have to pay council tax and is on a low income. Your income and savings are not taken into account when calculating this.
To check if you’re eligible for any discounts or reductions on your council tax, click here -> https://www.checkmycounciltax.scot/
If you think you may be eligible for a Council Tax Reduction, contact Clackmannanshire Council at 01259 450000 or email either benefits@clacks.gov.uk or counciltax@clacks.gov.uk
If you’re Struggling to Manage your Bills
If you’re struggling to pay your Council Tax, you should contact Clackmannanshire Council and let them know. They can try to help you arrange a suitable payment plan. You can reach them by phone at 01259 450000 or you can email counciltax@clacks.gov.uk.
You may be able to claim benefits or increase your current benefits if you’re:
- Struggling to afford essential things- such as food and housing
- Sick or disabled
- Not working
- Working and on a low income
- A pensioner and on a low income
- A carer
- Responsible for children
Contact the bureau and our team of advisers can help you to check if you’re missing out on any benefits you are entitled to. Alternatively, help to maximise your income can be found using our Money Map Tool -> https://moneymap.scot/
If you have found yourself in debt or are just struggling to manage the cost of living and would like some support and advice, we’re here to help. You can contact the bureau via telephone at 01259 219404 or you can attend our drop-in service Monday- Friday from 9:30am-2:30pm, no appointment necessary.