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A recent report by the Welsh government has revealed alarming figures regarding overdue council tax payments in Wales. The data indicates that families in Wales collectively owe a staggering £263m in outstanding council tax, marking a significant 139% increase compared to pre-pandemic levels. The rise in overdue payments has been a consistent trend since 2022, highlighting the financial strain many households are facing due to the cost of living crisis.
Among the Welsh counties, Gwynedd has emerged with the highest level of overdue council tax, averaging at £373 per liable household. In contrast, Neath Port Talbot has the lowest average overdue amount at £67 per household. The repercussions of missing a monthly council tax payment can be severe, as under current regulations, individuals become liable to pay the entire year’s bill after just two weeks of non-payment.
Gwynedd council has acknowledged the issue, citing the lowest council tax collection rate in Wales for the period of 2024-25 at 93%. Efforts are being made to review and enhance their recovery strategies in response to the escalating arrears. The situation has been exacerbated by the transitioning of some self-catering holiday lets from cheaper business rates to council tax, potentially contributing to the rising figures.
One resident, Rosemary from Pentir, shared her struggles, stating that she could not afford to pay the council tax from her pension anymore. The sentiments were echoed by other locals in Bangor, emphasizing the challenges many face in meeting their financial obligations. While some recognize the necessity for councils to generate revenue to maintain essential services, others contend that the current council tax system places an undue burden on vulnerable households.
The Welsh government is currently exploring measures to address the issue, including proposals to amend existing rules around non-payment. Plans include extending the timeframe before a missed monthly payment triggers a liability for the entire year’s bill from two weeks to two months. Finance Minister Mark Drakeford highlighted the need for a more compassionate approach, aiming to prevent further financial distress for those struggling to meet their council tax obligations
Read the full article from The BBC here: Read More
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