Sandwell Council is set to launch a new pilot scheme with HMRC to recover £3.5million of unpaid council tax.
Sandwell is among 29 councils working with the HMRC to use debt information sharing powers to recoup unpaid bills.
It means non-paying customers who are employed or have an income will be contacted and told to start paying their debts – or they will have their debt deducted directly from their earnings through their employer.
Powers under the Digital Economy Act (2017) allow councils to obtain employer and income information from HMRC for people who have failed to pay their council tax and already have an order to pay made against them at Magistrates Court.
Letters will start to go out in September onwards, so anyone with long-term council tax debt is urged to resolve it now to avoid money being taken directly from their wages.
Anyone contacted under the pilot will have already been issued with a number of reminders about their council tax payments, as well as a Magistrates Court summons.
Sandwell Council’s cabinet member for resources and core services Councillor Wasim Ali said: “We already have one of the best records in the country for collection of council tax. We collect almost 99% of council tax owed and this puts us among the top of all metropolitan councils in the country.
“We have identified 4,000 of our hardest to recover cases which we’ll be pursuing under these powers with the HMRC.
“It’s only fair that we all pay for the services we receive and there is a minority of people who avoid paying.
“This isn’t about pursuing people in hardship or those who are entitled to benefits they haven’t claimed to cover their Council Tax. We do a lot of work with vulnerable people and families to ensure they claim what they are entitled to and we will continue to help people who are struggling.
“This pilot is about making sure people who are liable for council tax pay their way and do not evade their responsibilities.
“The amount we recover from people who owe outstanding amounts will help us continue to deliver services and keep council tax bills as low as possible for people who do pay.”
He added: “Anybody who finds themselves in a position where they cannot pay their council tax should contact the council immediately to discuss their situation.”
The pilot will last one year before a decision is made on whether to roll out the programme to all councils in England and Wales.
Anyone who owes money on their council tax, or who is struggling to pay their bills, should get in touch with the council tax team:www.sandwell.gov.uk/contactcounciltax
Anyone facing financial hardship should contact the council’s welfare rights team who can advise on benefit eligibility and applying for benefits. Go towww.sandwell.gov.uk/welfarerights for details.
