Latest news with #DebtJustice
Yahoo
27-05-2025
- Business
- Yahoo
Number of council tax dodgers soars to highest level since 2009
The number of households not paying their council tax has risen to 4.4 million, the highest amount in 14 years. Research by Debt Justice, a campaign group, found the figure increased by 40pc last year, from 3.2 million in 2023. It amounts to the largest number of households in council tax arrears since 2009, when the global financial crash wiped out families' savings. In total, taxpayers owed around £6bn to cash-strapped local authorities last year, up from £5.5bn the year prior. Councils are already facing a £2.3bn funding gap this year, according to the Local Government Association. Campaigners said the figures show local authorities should focus on the 'growing crisis' of tax arrears rather than increasing council tax. Nine in ten town halls increased the tax by the maximum 5pc this year, bringing the average cost of a Band D property to £2,280. And a nationwide clampdown on second home owners has left them being charged double council tax. The premium, which has been introduced by more than 200 councils, means the average bill on a second home is £3,672. Telegraph Money is campaigning for the levy to be abolished. John O'Connell, of lobby group the TaxPayers' Alliance said: 'With a record 4.4m people now in council tax debt, town hall bosses should be focusing on helping struggling households, not hammering second homeowners with punitive premiums. 'Hiking taxes on one group won't solve the growing crisis facing millions of others.' Earlier this year, The Telegraph revealed that Labour councils are chasing almost twice as much unpaid council tax as Conservative-led authorities. Our analysis showed councils are already chasing £4.4bn in unpaid taxes. Of this, more than £2.5bn was owed to councils run by Labour, compared to £673m owed to Tory councils. Debt Justice highlighted that people who miss a council tax payment are generally from the poorest households. The Government is currently considering a ban on the use of bailiffs to chase arrears and will publish a consultation later this year. Andrew Dixon, of campaign group Fairer Share, said: 'I am deeply concerned by Debt Justice's recent findings. This alarming increase underscores the urgent need to reform our outdated and regressive council tax system.' Councillor Adam Hug, housing spokesman for the LGA said: 'All councils make every effort to collect the that which is owing to them and 96 per cent of council tax is collected in the year in which it is due. 'When there are instances of unpaid council tax, it is often due to complex circumstances or people already facing hardship, and local authorities seek to work with individuals to work out a payment plan and avoid them lapsing into debt.' The Ministry for Housing, Communities and Local Government was contacted for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
27-05-2025
- Business
- Telegraph
Number of council tax dodgers soars to highest level since 2009
The number of households not paying their council tax has risen to 4.4 million, the highest amount in 14 years. Research by Debt Justice, a campaign group, found the figure increased by 40pc last year, from 3.2 million in 2023. It amounts to the largest number of households in council tax arrears since 2009, when the global financial crash wiped out families' savings. In total, taxpayers owed around £6bn to cash-strapped local authorities last year, up from £5.5bn the year prior. Councils are already facing a £2.3bn funding gap this year, according to the Local Government Association. Campaigners said the figures show local authorities should focus on the 'growing crisis' of tax arrears rather than increasing council tax. Nine in ten town halls increased the tax by the maximum 5pc this year, bringing the average cost of a Band D property to £2,280. And a nationwide clampdown on second home owners has left them being charged double council tax. The premium, which has been introduced by more than 200 councils, means the average bill on a second home is £3,672. Telegraph Money is campaigning for the levy to be abolished. John O'Connell, of lobby group the TaxPayers' Alliance said: 'With a record 4.4m people now in council tax debt, town hall bosses should be focusing on helping struggling households, not hammering second homeowners with punitive premiums. 'Hiking taxes on one group won't solve the growing crisis facing millions of others.' Labour councils twice more likely to chase debt Earlier this year, The Telegraph revealed that Labour councils are chasing almost twice as much unpaid council tax as Conservative-led authorities. Our analysis showed councils are already chasing £4.4bn in unpaid taxes. Of this, more than £2.5bn was owed to councils run by Labour, compared to £673m owed to Tory councils. Debt Justice highlighted that people who miss a council tax payment are generally from the poorest households. The Government is currently considering a ban on the use of bailiffs to chase arrears and will publish a consultation later this year. Andrew Dixon, of campaign group Fairer Share, said: 'I am deeply concerned by Debt Justice's recent findings. This alarming increase underscores the urgent need to reform our outdated and regressive council tax system.' Councillor Adam Hug, housing spokesman for the LGA said: 'All councils make every effort to collect the that which is owing to them and 96 per cent of council tax is collected in the year in which it is due. 'When there are instances of unpaid council tax, it is often due to complex circumstances or people already facing hardship, and local authorities seek to work with individuals to work out a payment plan and avoid them lapsing into debt.'
Yahoo
27-05-2025
- Business
- Yahoo
Number of council tax dodgers soars to highest level since 2009
The number of households not paying their council tax has risen to 4.4 million, the highest amount in 14 years. Research by Debt Justice, a campaign group, found the figure increased by 40pc last year, from 3.2 million in 2023. It amounts to the largest number of households in council tax arrears since 2009, when the global financial crash wiped out families' savings. In total, taxpayers owed around £6bn to cash-strapped local authorities last year, up from £5.5bn the year prior. Councils are already facing a £2.3bn funding gap this year, according to the Local Government Association. Campaigners said the figures show local authorities should focus on the 'growing crisis' of tax arrears rather than increasing council tax. Nine in ten town halls increased the tax by the maximum 5pc this year, bringing the average cost of a Band D property to £2,280. And a nationwide clampdown on second home owners has left them being charged double council tax. The premium, which has been introduced by more than 200 councils, means the average bill on a second home is £3,672. Telegraph Money is campaigning for the levy to be abolished. John O'Connell, of lobby group the TaxPayers' Alliance said: 'With a record 4.4m people now in council tax debt, town hall bosses should be focusing on helping struggling households, not hammering second homeowners with punitive premiums. 'Hiking taxes on one group won't solve the growing crisis facing millions of others.' Earlier this year, The Telegraph revealed that Labour councils are chasing almost twice as much unpaid council tax as Conservative-led authorities. Our analysis showed councils are already chasing £4.4bn in unpaid taxes. Of this, more than £2.5bn was owed to councils run by Labour, compared to £673m owed to Tory councils. Debt Justice highlighted that people who miss a council tax payment are generally from the poorest households. The Government is currently considering a ban on the use of bailiffs to chase arrears and will publish a consultation later this year. Andrew Dixon, of campaign group Fairer Share, said: 'I am deeply concerned by Debt Justice's recent findings. This alarming increase underscores the urgent need to reform our outdated and regressive council tax system.' Councillor Adam Hug, housing spokesman for the LGA said: 'All councils make every effort to collect the that which is owing to them and 96 per cent of council tax is collected in the year in which it is due. 'When there are instances of unpaid council tax, it is often due to complex circumstances or people already facing hardship, and local authorities seek to work with individuals to work out a payment plan and avoid them lapsing into debt.' The Ministry for Housing, Communities and Local Government was contacted for comment.
Yahoo
10-03-2025
- Entertainment
- Yahoo
Why Michael Sheen used $130,000 of his own money to buy $1.2m worth of debt owed by people in his hometown
Michael Sheen used £100,000 ($130,000) of his own money to buy £1 million ($1.2 m) worth of his neighbors' debts. He made the documentary "Michael Sheen's Secret Million Pound Giveaway," to raise awareness of credit debt. Sheen said that using his own money proves he's "serious" about solving the issue of credit debt. Michael Sheen has paid off £1 million ($1.2 million) of debt held by 900 strangers in his Welsh hometown, to highlight the issue of credit debt in the UK. According to the charity Debt Justice, personal debt has reached "new highs" in the UK, with 10 million people heavily in debt due to increases in outgoing such as rent and utility bills. Debt is also a considerable problem in the US: the Federal Reserve Bank of New York said that the total household debt increased by $93 billion by the end of 2024, to $18.04 trillion. Sheen — best known for his roles in "Frost/Nixon," "The Queen," "Tron: Legacy," and "The Damned United" — told The Guardian on Monday that he used £100,000 ($130,000) of his own money to buy £1 million of debt, to spotlight what he sees as the unfair way that credit companies operate. Debt acquisition companies are legally allowed to purchase bundles of existing debt for a lower amount. When speaking to the BBC's "The One Show" on March 4, Sheen said he was able to set up one of these companies to pay off the debt. His efforts are depicted in the new documentary "Michael Sheen's Secret Million Pound Giveaway," which premieres Monday on Channel 4 in the UK. Due to data protection laws, Sheen doesn't know whose debt he paid off, but told The Guardian he wants to "encourage banks to offer affordable credit to people previously excluded based on their income, background or where they live." Responsible Finance, which says it represents "responsible finance providers" in the UK, argues on its website that greatly increasing the size and number of credit unions and Community Development Finance Institutions could result in a 13-fold increase in the amount of affordable credit available for businesses and people on low-incomes rejected by larger banks. There is a misconception that people who get into debt are making "extravagant" purchases, but that isn't typically the case, Sheen said. "By talking to people who are working, maybe working two jobs — these are people who are incredibly resourceful, incredibly resilient. They're not going on extravagant holidays or anything like that. It's just basic," he added. "The system doesn't work any more. But people find it easier to imagine the end of the world than something that's a credible alternative to capitalism. "I think people really feel there's something intrinsically wrong and flawed with the system, and recognize that it needs radical change, but the only people who are offering radical change are people who are dangerous. And there's no good end to that." Sheen said that poverty was rife when he was growing up in the city of Newport and Port Talbot, but he was "unaware" of it at the time. His father worked at the steelworks and his mother was a secretary, and he "always felt like we were doing all right, but in retrospect we were barely getting by." Sheen said he is aware that by using his own money, he risks being accused of using the cause to boost his profile. But he said "it shows that you're serious about what you're doing, but it also encourages other people to take that step." He added: "I never feel like it's about me — mainly it's about working with other people or highlighting what they do. I'm not doing it because I want people to think I'm great; I want us to be able to imagine an alternative to this, because this doesn't work." Read the original article on Business Insider
