Council tax support cuts driving low-income families to insolvency advice

Published on April 10, 2015 by Crawfords Accounting

Many more low-income families are likely to be in need of insolvency advice as the new tax year gets underway, with further cuts to the council tax support available to them.

Already last year, the TUC reports an increase in court summonses of over half a million, as many many more low-income households were left unable to meet their higher council tax bills.

Despite several years of frozen council tax in some areas, the level of support available to the poorest residents has been cut as a budget-saving measure.

This effectively leaves those with the least available income as the only ones with a higher level of council tax to pay.

TUC general secretary Frances O’Grady said: “If anyone is to be hit with higher taxes it should be the fat cats in the boardrooms and those corporations that are dodging paying their fair share, not the poorest working-age households in the UK.”

For some of these hard-up council taxpayers, personal insolvency could be an inevitability – but also a legitimate way out of an unmanageable financial situation, and professional insolvency advice can help you to decide if this is the best option for you.

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