A Liverpool man saw his debt escalate to £8,000 after a simple oversight. Neil, who had lived with his girlfriend for 17 years, assumed council tax payments were automatic when he moved out on his own. He explained to Money Wellness: "For like the last 17 years I was living with my girlfriend, and basically, I just used to give her £500 a month, and she paid everything. When I moved in on my own, I just kind of got a bit... behind."
Debt spirals to over £8,000
It took six months for Neil to discover the problem after receiving letters and liaising with the council. By then, he owed £350 on council tax, and his total debts soon exceeded £8,000. Government figures show approximately £9 billion is owed to local authorities in unpaid council tax.
Council tax debt can lead to serious consequences, including legal demands and court summons. When his debts began affecting his work, Neil sought help. He reached out to Money Wellness, who assisted him in arranging a Debt Relief Order.
Weight lifted after speaking to a person
Neil emphasized the importance of speaking to a real person rather than relying on automated systems. He said: "Rather than rely on waiting for an email or wait for the text message or something like that, I'd rather just phone someone and speak to someone, to sort it out that way. Not everyone is [tech] savvy and so I think, if you know who to ask for advice, you will get the help you need. It's been such a weight lifted off my shoulders."
He encouraged others to seek help early: "I'd probably recommend speaking to yourselves. Or just going to Citizen Advice, something like that. But yeah, there's help there if you need it."
Council tax reductions available
Many people may not realize they can reduce their council tax bill. Reductions and discounts are available based on health, income, benefit claims, and household composition. In some cases, bills can be reduced by up to 100%. Support varies by local council, and the Gov.uk website has a tool to check eligibility.
