FINANCE

Labour: 450,000 in court since CTB reforms

War of words erupts after Labour reserach suggests 450,000 low-paid and vulnerable residents may have been summonsed over local tax arreaers.

Labour party research indicates nearly half a million residents have been summonsed to court for failing to pay council tax arrears following the introduction of localised support schemes this April.

Labour researchers sent a Freedom of Information request to all 326 English councils, asking how many residents were now paying either some contribution for the first time or more in local charges after reforms to council tax benefit took effect this April.

Around a third of the councils, 112, responded that legal action had been initiated against a total of 156,563 people since the development of localised schemes - introduced to save one tenth of the annual £4.5bn benefit cost previously borne by central government.

Based on this finding, Labour estimates that the total of summonses could be as high as 455,710 people.

Independent research carried out this year by the New Policy Institute found more than seven in 10 English councils, some 232 authorities have implemented localised CTB schemes seeking some payment from all unprotected working-age residents.

Their findings further suggested 2.4 million households are set to pay an average £138 more in council tax bills in 2013/14 – with around four fifths (78%) or some 1.98 million people affected by the reforms paying council tax for the first time.

Shadow local government secretary, Hilary Benn said the reforms were a deliberate imposition of a council tax increase on people on the lowest incomes, including hundreds of thousands of low paid workers.

‘The failure of this government to identify the number of people affected or to monitor the costs to the courts of all these summonses is negligent and irresponsible,' Hilary Benn added.

In response, local government minister, Brandon Lewis said: ‘This shoddy survey is contradicted by official statistics, which show arrears have fallen in the last year and the amount of council tax collected has increased.

‘In the last year of the Labour Government, 3 million summons were issued for unpaid council tax. The Coalition Government has taken action to help hard-working families by freezing council tax for up to five years.

‘Under Labour, council tax more than doubled and the council tax benefit bill went through the roof, costing every household in the country £180 a year. This Government is reforming welfare to pay off Labour's deficit and to support people in getting back to work.'

Jonathan Werran

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