Council tax: 'Early intervention' key to stopping households falling into debt

Credit: PA

A new report by the Wales Centre for Public Policy suggests "early intervention" is needed to help households avoid debt.

The recommendations come as the Centre warns of "large increases" to council tax rates expected in the coming year. The report highlights the importance of building "personalised and proactive support" rather than a "one-size-fits-all approach".

The report focussed on council tax and social housing debts.

ONS figures estimate 5.2% of households in Wales have problems with debt, with a greater number of them in arrears for their council tax or social housing rents than in previous years.

The new Wales Centre for Public Policy report outlines the key features of an effective support system:

  • Building trust with citizens right when they start being responsible for paying council tax or social rents

  • Identifying any problems and acting on them as early as possible

  • Easing the process of referring people in debt into partner services, and improved access to independent specialist help

But report authors are warning that the ability for councils and housing associations to respond to future increases in demand could be hampered by increased work pressures.

The Wales Centre for Public Policy said they hope councils and landlords will be able to "learn from" the report.

Dr Worthington added, however that:

"The unanswered question is whether they're even able to commit extra resource to this at a time when budgets are being further squeezed".

Read more:

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- Jail threat for council tax debt to end