The Scottish Government has awarded £400,000 to Citizens Advice Scotland (CAS) to improve access to help for people struggling with Council Tax debt. Building on successful pilot schemes funded in 2023/24, the additional funding will enable targeted advice on Council Tax debt to be provided in six new areas, including West Lothian, East Lothian, Dumfries and Galloway, Highlands, Argyll and Bute and East Renfrewshire.
Recent data from StepChange highlighted the ongoing pressure that keeping up to date with Council Tax payments is having on people as average arrears per household in Scotland have risen by 11 per cent year on year. The average Council Tax arrears amount for those seeking help from the charity is an average of £2,075 – up from £1,871 over the same period last year.
The figures also show an increasing number of people on benefits looking for help with debt problems. Two in five (40%) Scottish clients are in receipt of Universal Credit, which is up by six percentage points compared to April to July of 2023 (34%).
The charity said lower income households continue to feel cost of living pressures more acutely, as higher bills take up a larger proportion of their income, and make it more difficult to repay debt.
The additional funding was announced by Housing Minister Paul McLennan on a visit to West Lothian Citizens 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.”
Council Tax debt support from the Citizen’s Advice network will be available in:
- Clackmannanshire
- Renfrewshire
- Scottish Borders
- Dumfries and Galloway (DAGCAS)
- West Lothian CAB
- a consortium of East Lothian CABx
- a consortium of Highland CABx
- Argyll and Bute CAB
- East Renfrewshire CAB
Check if you could be exempt from paying Council Tax
You will not pay Council Tax if:
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You are a full-time student
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You are in the Armed Forces in Forces accommodation
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You live in a care home or hospital
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Your home is unoccupied and empty (up to six months) – for example, if you’ve gone into hospital
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You have a severe mental impairment (e.g. dementia) – if you only live with someone who has dementia, then you’ll be treated as a sole occupant as they will be disregarded, but you won’t both be exempt
Contact your local authority about your eligibility and how you can apply for an exemption.
Could you be eligible for a discount on your Council Tax bill?
There are some circumstances where you may get a reduction on your Council Tax and the amount of discount varies depending on your circumstances.
If you live alone
The full Council Tax is calculated assuming there are two or more people living in each home – if you live alone, you should apply to your local council for a discount – you could get a 25 per cent reduction, regardless of your financial circumstances.
If you live with someone under 18 or a student
Council Tax is not calculated for anyone aged under 18, full-time students, student nurses and some apprentices or trainees.
If you are a carer
Carers who look after someone in the household for at least 35 hours per week and who meet additional criteria may be disregarded for Council Tax purposes, contact your local authority for their eligibility criteria.
Just be aware, this doesn’t apply if the person receiving care is the partner of the carer, or is the carer’s child aged under 18.
If there are major changes to the value of your home
You may be able to get your home moved to a lower band if it has decreased in value. For example, if you have made home adaptations for a disabled person, or if a motorway has been built nearby.
You may also get the band lowered if a room in the house is dedicated to equipment used by a disabled person on a daily basis.
If you change the way you pay
Although the total year’s amount will stay the same, you can request your bill be split over 12 months instead of 10, so you can spread the cost and reduce your monthly outgoings.
Alternatively, if you can afford to pay the whole bill in one lump sum, check with your local council if you can get a discount.
Apply for Council Tax Reduction
You may be eligible to claim a Council Tax Reduction if you’re on a low income or claiming certain benefits.
You can also claim Council Tax support regardless of whether you own your own home or rent, or whether you’re working or unemployed.
Each local council is responsible for operating their own Council Tax support scheme, so the amount of support given across the country may vary.
The amount you will get depends on many factors, including:
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Which benefits you receive
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Your age
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Your income
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Your savings
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Who you live with
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How much council tax you pay
You may get more Council Tax support if you receive a disability or carers benefit.
If you receive the Guarantee Credit Part of Pension Credit you may even get your Council Tax paid in full. If you don’t have it, but are on a low income and have less than £16,000 in savings, you may still get some help.