Improving access to help with council tax debt

Citizens Advice Bureaux to provide support in six more areas

The Scottish Government has awarded £400,000 to Citizens Advice Scotland to improve access to help for people struggling with Council Tax debt.

Building on successful pilot schemes funded in 2023-4, the additional funding will enable targeted advice on Council Tax debt to be provided in six new areas: West Lothian, East Lothian, Dumfries and Galloway, Highlands, Argyll and Bute and East Renfrewshire.

The pilot bureaux gave targeted advice on Council Tax debt as well as wider holistic support and also worked with councils to support best practice in Council Tax debt collection.

The additional funding was announced by Housing Minister Paul McLennan on a visit to West Lothian Citizen’s Advice Bureau, in Livingston, which will use the funding to provide more adviser hours and appointments and extend help to more people using outreach locations to target the most vulnerable.

Mr McLennan said: “We know how worrying public sector debt can be for people in low-income households. Advice services can provide vital support to those with money worries and debt.

“Good working relationships with local authorities can be key and the Scottish Government is working to support best practice across the whole of local government.

“The Scottish Government has both legislated and acted to ensure that people who are financially vulnerable are protected and that debt collection is handled sensitively and appropriately.

“Ministers continue to encourage public bodies to promote empathy and dignity for people struggling with debt.”

Karen Nailen, CEO of CAB West Lothian said: “Council tax debt is the single biggest debt issue that is brought to our CAB every year. It creates real pressure on people’s lives, and for many it can be a sign of wider financial distress.

“This pilot funding is vital to allow us the time and space to look at ways to tackle some of the underlying issues. Working in collaboration with West Lothian Council will enable preventative measures to be identified alongside better advice outcomes for individuals and families.”

MEANWHILE in Edinburgh the Citizen Advice Bureau is one of three advice organisations – the others are CHAI and Granton Information Centre – facing a combined cut of £1 MILLION as Edinburgh Integration Joint Board struggles to balance it’s books.

The EIJB meets on Tuesday to consinder new recommendations.

Help tackling council tax debt

Pilot scheme will see councils and advice services work more closely together

Extra help for people struggling with council tax debt will be on offer in three local authority areas under a pilot scheme. 

The Scottish Government is providing Citizens Advice Scotland with £200,000 funding to better understand the reasons why some people end up in council tax arrears and to work collaboratively with local councils to help reduce and prevent council tax debt in future. 

Citizen’s Advice Bureaux in Renfrewshire, Clackmannanshire and the Scottish Borders will test different ways of working including: 

  • Providing targeted support to individuals facing council tax debt
  • Simplifying the referral processes between councils and advice services
  • Organising mutual training sessions for council and Citizens Advice staff

Housing Minister Paul McLennan visited Roxburgh and Berwickshire Citizen’s Advice Bureau to launch the project.  

Mr McLennan said: “We know many people are struggling in the cost of living crisis and that is why we are targeting resources at those most in need.

“Council tax debt is a significant issue, and one that particularly affects the most vulnerable. The three Bureaux involved in these pilots have established relationships with their local authorities. This funding will help build on those connections to help individuals tackle problem debt and also provide valuable learning on how public sector debt can best be managed. 

“Advice services are critical to Scotland’s communities, supporting people to understand their rights and entitlements, maximising incomes and helping to reduce poverty. This year we will invest more than £12.5 million in a range of advice services providing free income maximisation, welfare and debt advice.” 

Myles Fitt, Financial Health Strategic Lead at Citizens Advice Scotland said: “Council tax debt is the single biggest debt issue that clients bring to the CAB Service each year. The cost-of-living crisis is only worsening this problem, so we welcome the opportunity this funding provides to make a difference to peoples’ lives and financial well-being.

“Through working in partnership with councils, the three bureaux involved in this pilot will bring their deep insight into the factors and barriers that lie behind council tax debt to develop joint solutions that will help those in arrears now and in the future.”