I may owe thousands in council tax arrears and I feel sick

[Littlespiderseverywhere]

So. I recently switched to UC from tax credits, and I declared my savings to them- about £7700. I knew that the limit for savings on tax credits was £16000, and on UC it's tapered from £6000.

I was also on housing benefit, and council tax benefit. I had made my initial claim for these about 15 years ago when I first moved into a house with baby DS1, and was very poor with no savings at all. Since then the only change of circumstances I had had to report to the council was moving house once.

The council have just emailed me and told me that DWP have informed them that my savings are over £6000, which is their cut off for council tax benefit. I had no bloody idea of this. I must have been told- or asked to declare any savings- 15 years ago when I first applied, but at the time I had nothing, and have no recollection of this.

My savings have been close to or over £6000 for 5-6 years!! I have always lived very frugally through fear of ending up without money again- for me, having an emergency nest egg has been top priority.

I'm so anxious and upset (hence posting at this time of night!). I'm autistic too, and I can feel the worry pushing me towards the edge of not being able to cope.

The council want to see all my bank statements for years back, and I intend to fully comply ASAP. But- as far as I can calculate- I think I will owe them about £6-7000.

Do you think I will be able to offer them a lump sum from my savings- say £3000- and set up a payment plan for the rest? I'm self employed and am not quite even hitting the minimum income floor for the hours I'm working (20 hours p/w- I have a fit note which doesn't really seem to be needed yet because I'm still on transitional protection).

I feel sick with anxiety that I could lose all the savings I've carefully scrimped and saved to build up. What if the car breaks down tomorrow?? I realise that I have only been functioning well all these years because I have been able to live within parameters of my own creation regarding hours worked and having enough money for mine and the kids' modest needs, and I'm terrified of the effect on the DC if I'm unable to remain stable and functioning for them.

Citizen's Advice is a charity and is largely staffed by volunteers. You are writing about them in such an entitled manner. They are a free service there to do you a favour. They are not a service provided to you by the government or something you are paying for. You could do with an attitude change in this regard.

Seriously? 🙄
I know they're a charity. I know they are partially staffed by volunteers (although the debt side of the operation say clearly that they are government funded). I also know that the phones ring and ring because Citizen's Advice, like any organisation in this country helping people in need, is utterly overwhelmed by demand, and to be frustrated by that is to be frustrated by the widening gaps through which so many of us are falling.

It's not "entitled" to want support and signposting for a tricky situation, from an organisation that is clearly there for that very purpose, and which everyone and their dog tells you you need to get in touch with.

And, FYI, the word "entitled" is not a descriptor on its own, and means the opposite of what you seem to think it means.

May be useful info

https://england.shelter.org.uk/professional_resources/debt_advice/resources_for_debt_advisers/council_tax_debt_more_than_six_years_old

That is interesting. I cannot quite fight my way through the legalese mind you, and I'm hoping that the savings threshold was changed no earlier than 2019 anyway. Hopefully I'll hear back from the council on that.

But you've reminded me that Shelter has a reputation for really good legal help. (Although hopefully I won't need it 😬).

More info

https://www.gov.uk/council-tax/who-has-to-pay

https://www.gov.uk/council-tax-appeals

https://www.gov.uk/council-tax-arrears

Some councils charge double or more for second homes or empty homes
Council tax

www.gov.uk/council-tax/second-homes-and-empty-properties

I am on UC and at one point has close to the £6k because I sold a vehicle I could no longer use.

Op hasn’t flouted paying council tax. Had they known about the changes to the rules - they would have kept within the rules so as to not be liable or in the situation they are now.It’s not that difficult to work out, or shouldn’t be, but not everyone is able to take insight into a situation to realise what has actually happened - and you don’t appear to be able to process information in that manner.

As @MikeRafone says the OP hasn't flouted anything.

At worst they've been careless in not reading notes and failing to disclose assets on their Annual Review.

There isn't an annual review on UC. Unless I've missed anything 😬.

You can have over £6000 whilst on UC, but they will take (I think) £5.00 for every £250 over that amount off your UC. The absolute ceiling for UC is £16,000.

No, with UC you must report changes as you go. I just switched to UC and reported my savings honestly, and this is where it all started- because they then informed the council.

I did have an annual review whilst on tax credits, from which I recently switched. However, I didn't need to report my £7000 savings to them, because their savings limit is £16000.

And I had no idea that the council had a savings limit of £6000 for council tax benefit. Almost definitely because it changed whilst I was already claiming and they didn't adequately inform me.

We're talking about Council Tax Reduction not UC.

Only skimmed even your responses. First thing to do is to pay anything over the 6k to the council now. Then you will be eligible for benefit going forward instead of racking up more debt. This can be an advance payment of council tax for this year or towards paying off your debt. I'd probably pay them £1300 so you dont have to worry about having a little in your current account.

@Littlespiderseverywhere the council will always allow you to pay it off. better to do it now before they get courts involved because then you would be liable for the court charges which are not cheap. even just start paying an extra 120 per month if you cannot clear it but do clear it. unless, of course, you want to become bankrupt, which will only happen after they have emptied your bank account of any savings.

I got a call back from the local CAB this morning. They are currently booking appointments for August 😬, but by an amazing stroke of luck she then went "Oh actually..we've got a cancellation on Wednesday!"

So I get a phone consultation on Wednesday, and they will help me do a budget and negotiate with the council on my behalf. Even though I could probably do a budget myself, it feels great to have an expert onside, who knows our council and can advocate for me.

Good luck next Wednesday @Littlespiderseverywhere ! Hope it goes well. 😘

Top tip with the CAB.

Have all your paperwork to hand during your appointment. Otherwise you won’t get much out of the session.

August? Wow they must be really busy.
The CAB where I live, you queue up in the morning and take your chance.

It must be a relief to know you are getting some help with it all. I am sure it wont be as bad as you think.

She works the hours she's able to given her Autism, she needs to remain well & functioning for her kids as well as herself.

you're only showing yourself up.

I don't know why some people are treating this thread like it is in AIBU.

Be side some
oeople are just nasty. Some people are bitter & jealous. It's horrible on here some days.

some people need to realise they are but one accident/life event/ health issue from being 'on the other side'

the ones ALSO claiming benefits & still being nasty are really difficult to understand. You just gave to pity them.

Ive Worked for a LA in benefits and if you have been claiming Housing benefit (HB) while your capital has been over £6k then unless you were also getting ESAIR, IS or JSA then there will likely also be an overpayment of HB as there is a tarif income taken for all capital between £6k-£16k.

HB and council tax reduction schemes do not have annual reviews. Notification letters issued will have a statement saying all changes need to be reported and this is sufficient (appeals have been won) on these grounds.

Your council may say that if you can’t pay an arrears in full that they will not make any arrangements until after they have got a liability order for the debt. After this is granted if you default on any repayment then they don’t need to start the recovery process over again. If you disagree with any decisions they make then ask for a reconsideration and if you are still not happy appeal.