The number of people falling behind with their council tax has risen sharply - despite council tax freezes across England claims debt charity Consumer Credit Counselling Service (CCCS).

The charity has seen an annual 27% hike in the number of people contacting it for help with council tax arrears, from 13,353 people in 2010 to 16,958 in 2011.

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Renting pressure

The average amount owed in council tax arrears has also increased, from £675 in 2010 to £717 in 2011. So why the arrears surge?

Much of it, claims CCCS director of external affairs, Delroy Corinaldi, has been fuelled by the worsening financial position of renters, "with more renters contacting the charity with council tax arrears than homeowners for the first time. A total of 8,841 renters sought advice on council tax debts in 2011, up from 6,084 in 2010."

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Corinaldi says anyone who is struggling to keep up with their council tax bills "should contact their council to discuss the problem, and check that they are receiving any discounts or rebates to which they may be entitled. If you are struggling to cope you should also seek free advice from a debt charity like CCCS as early as possible."

Jail term

The London Borough of Hounslow says a woman who failed to pay her council tax despite five court orders has been sent to prison. Rashpal Kaur Sidhu, aged 51, of 57 Sandalwood Road, Feltham, was sentenced to 17 days imprisonment in April for non-payment of council tax arrears of £1,985.87 dating back to 2006.

Stephen Fitzgerald, chief financial officer at the London Borough of Hounslow, said the borough "has to collect the council tax we are owed, and it would be unfair on those who do pay if we didn't. Mrs Sidhu was given ample opportunities to pay off her arrears, but refused to comply with the court's wishes."

Ditch the discounts

Meanwhile the Local Government Association claims the Government should ditch blanket council tax discounts or the more vulnerable will see large increases in their bills. The LGA claims more than two million low earners or the young and unemployed could pay an average of £247 more in council tax each year.

Although entitlement control of the benefit goes to local councils in 2013, there is still a large £500m funding cut - equivalent to 10% of the total available.

Poor hardest hit?

"The £500 million cut," says LGA Chairman, Sir Merrick Cockell, "is impossible to deliver without cutting services, increasing council tax for everyone or asking the working poor and young unemployed to pay an extra £247 a year. The Treasury has made the cut and left councils to make incredibly tough decisions and face the inevitable fallout."

"The poorest regions and the most vulnerable people will be hardest hit by this cut unless the Government offers councils more flexibility over all forms of council tax discount. It is the only way that councils can ensure that the greatly reduced funding for council tax benefit is targeted at the local people who need it most."

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