England and Wales FAQs

Council tax and benefits FAQ's

England and Wales>Types of debt>Council tax and benefits

If your local authority applies to the court for a liability order, you will receive notice at least fourteen days before the hearing. You should attend the hearing to make an offer to payment by instalments.

If you think you have been incorrectly billed, you should contact the council as soon as possible to appeal the bill and ask for the hearing to be adjourned.

Once a liability order is granted, the council has a number of ways to collect the debt:

  • An arrangement to pay in instalments
  • A ‘distress warrant’ and the use of bailiffs
  • Take money from your wage by an attachment of earnings
  • Take money from your benefits
  • A charging order in the county court if the debt is over £1000
  • In rare cases, bankruptcy proceedings

If you have received a liability order, the consequences can be serious. Please contact our Helpline and one of our advisors will be able to advise you on your situation.

England and Wales>Types of debt>Council tax and benefits

If you do not pay back an overpayment, the benefit agency may take court action. If you do not pay back council tax benefit the council will usually add the overpayment to your overall council tax and send you a revised bill. For more information see the council tax debt FAQs.

Community Legal Advice can give you more advice on your rights.

If you are having problems paying your benefit overpayment back or any other debts we can help you. You can use our online debt counselling service, CCCS Debt Remedy, which will provide you with the most appropriate solution to your debt problem. Alternatively contact our free Helpline on 0800 138 1111.

England and Wales>Types of debt>Council tax and benefits

If you are in severe financial hardship you can apply for an interest-free loan from the social fund. The Department of Work and Pensions (DWP) provides these loans and there are two different types. These are:

  • Budgeting loans between £100 and £1500. These are for anyone receiving Income Support, Income-Based Jobseeker’s Allowance or Pension Credit for at least the last twenty six weeks
  • Crisis loans up to £1500. These are for anyone over sixteen to cover immediate needs if you have no other means of borrowing. You do not have to be in receipt of any benefits to apply for a crisis loan

As well as loans, the social fund offers community care grants which you do not have to pay back.
You can find out more about social fund loans online or in person from Jobcentre Plus.

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