Council tax bills in a lot of cases have already been issued with some councils opting to defer payments until June.
Those deferred bills will be issued soon. This week has seen the introduction of the Breathing space and Debt Respite Schemes which will be welcomed by many. While these schemes give consumers support and protections as well as some extra time to resolve issues with unpaid debt. This is very much a temporary fix.
The new scheme is likely to be needed by many as according to research conducted by the Money Advice Trust in late March, as many as 6.2 million adults have had to use credit to pay for essential costs such as groceries, utility bills, and council tax as a result of the pandemic.
If you are entering a new council tax year having arrears from the previous year you should seek advice from a qualified debt adviser as soon as possible. Your debt adviser will work with you to find the best way forward. That might involve applying for breathing space to buy some time while you choose the right debt solution to fit your circumstances.
Breathing Space Eligibility
To be eligible for the scheme you need to be living in England or Wales and not be in another formal debt solution set up such as a debt relief order, individual voluntary arrangement, or bankruptcy.
Applicants will also need to owe at least one qualifying debt with the full list covering a broad range of debts such as credit card debt, personal loans, rent arrears, and council tax arrears.
Some debts will not qualify and these include Universal Credit advances and student loans.
Priority debt such as rent arrears or council tax debt will qualify for the scheme. Speak to an adviser today who can help you plot a way forward.
