Change to Housing Bill could see millions in council tax debt written off

Changes proposed to the Housing Bill could lead to millions of pounds of council tax debt being written off, the Scottish Greens have claimed.

The changes proposed by Scottish Greens co-leader Ross Greer on Tuesday would reduce the amount of time needed for council tax debts to be written off.

Scottish council tax debt is currently written off after 20 years and the amendment would follow the equivalent rule in England being six years.

Anti-poverty campaigners have raised concerns that if a family has been unable to pay off their debts after five years of enforcement action being taken against them, continuing to chase them through the courts is unlikely to recover the money but will likely push them deeper into crisis.

Mr Greer said this system leaves “families trapped in cycles of poverty”.

He said: “The same councils who provide free school lunches to support children in poverty are sending sheriff officers to their home after school, all to chase debts they know these families cannot afford to pay off.

“This system leaves families trapped in cycles of poverty and financial crisis. They fear every knock on their door. It doesn’t even work for councils, who go to huge expense to chase people for money they don’t have.”

“MSPs can break that cycle of poverty this afternoon and help those stuck with unpayable debts to get their lives back on track.”

First Minister John Swinney has been vocal about his priority to eradicate child poverty in Scotland.

The Scottish Government has introduced the Scottish child payment benefit and decided to lift the two-child limit from March next year.

Last Wednesday, Mr Swinney announced that fairer futures partnerships (FFP) schemes will be expanded to continue fighting child poverty.

Mr Greer said, with this in mind, he believes the council tax debt rules should be changed, saying: “The First Minister’s top priority is eradicating child poverty.

“He knows it makes no sense for Scotland to pile more misery onto families by pursuing these toxic debts for four times longer than England.

“I’m sure he also knows that this historic debt is largely unpayable, but the Scottish Government is still holding back on supporting my proposals. I will do everything I can to work with ministers and councils to make it a reality.

“Every day that we keep these cruel rules in place is another day of fear and worry for some of Scotland’s most vulnerable families.”

Mr Greer asked Mr Swinney at First Minister’s questions on Thursday if he agreed it was time to remove the debt.

Mr Swinney said: “Mr Greer knows the absolute focus that I have on eradicating child poverty. When I became First Minister, I was asked what the clear mission of my Government was, and I said that it was the eradication of child poverty.

“I have a lot of sympathy with Mr Greer’s point about long-standing council tax debt. I know that related provisions are being considered in the context of the Housing (Scotland) Bill; those proposals have not been subject to the amount of consultation that would normally apply for legislation.

“The Parliament rightly pressurises the Government to ensure that there is proper consultation — as do stakeholders, including our local authority partners.

“Having said all that, I am sympathetic to Mr Greer’s point, and I am open to further dialogue on how we might pursue his ideas in that respect.”