PEOPLE could have their wages docked to pay back unpaid council tax.
The move is set to come as part of a trial as Bolton Council strives to recoup £16m in unpaid council tax.
Around £5.5m worth of council tax was unpaid last year, taking the total to £15.92m altogether.
The local authority collected £123.8m in council tax over the last financial year as well as £3.4m of payments in arrears.
This comes as the council needs to plug a £23.5m gap in its budget over a two-year period.
Now, residents who do not pay their council tax could have their debts deducted directly from their earnings.
As part of a trial which Bolton Council has been selected for, non-paying people who are employed and have an income run the risk of their pay being docked by their employer.
Council leader David Greenhalgh said: “The vast majority of our residents pay their council tax every month, that helps to pay for vital services and to support some of our most vulnerable people.
“However, there are those who are avoiding paying council tax and despite our best efforts we have been unable to recover what they owe. We hope this pilot gives us the power to hold these people to account.
“Together with our partners in debt advice charities, we will continue to support those people who are struggling to make ends meet. Anyone who is struggling with their bill should get in touch with us straight away.”
It has been asked to work with the Department of Work and Pensions (DWP) and HM Revenue and Customs (HMRC) as part of the trial.
Bolton Council will be one of 29 local authorities to pilot the scheme aimed to help recover unpaid council tax. It will be among the first to use powers introduced by the Digital Economy Act 2017.
The legislation allows councils to obtain employer and income information from HMRC for people who have failed to pay their council tax and have an order to pay by the local magistrates’ court.
Residents would be asked to start paying their debts before they are deducted from earnings and only those in a financial position to pay would be affected.
The process is known as an Attachment of Earnings which is commonly used to recover debt.
However, if a person fails to or refuses to supply their employment details, councils have been unable to recover unpaid council tax using this method.
The pilot scheme is expected to help councils to recover millions of pounds per year in unpaid council tax, which could otherwise be used to improve services to residents.
Bolton Council is already working with national debt advice charities to support vulnerable residents who are struggling with debt.
If a person is found to be unemployed or does not earn above a low-income threshold, their debt will not be taken from them automatically. Anybody who finds themselves in a position where they cannot pay their council tax should contact the local authority immediately to discuss their situation. The pilot will last one year before being reviewed, after which a decision will be made whether to roll the programme out across all councils in England and Wales.
Each pilot is registered on gov.uk. to provide transparency about what data is being shared.
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