Walsall Council owes more than £1m in council tax refunds
A council in the Black Country has yet to refund more than £1 million in overpaid council tax, it has been revealed.
Walsall Council was £1,422,210.73 in credit for council tax accounts up until October this year, a Freedom of Information request has revealed.
The council said the accounts went back a 'number of years' but the majority of credits that have arisen this financial year are in the process of being refunded.
Residents leaving their properties with no forwarding addresses and people dying have been blamed for delays in issuing refunds.
Ruth Allen, information rights officer at the authority, said: "The vast majority of older credits relate to closed accounts where the council tax payer has left and authority does not have a current forwarding address.
"A significant number of these are less than £5.
"A number of the credits relate to deceased estates where the council are awaiting the outcome of probate to determine who the refund should be issued to."
She said that when residents accounts were in credit all effort is made to refund the person, usually by Bacs transfer direct into their bank account.
She added: "Where that is not possible they are notified and provided with an amended bill showing the credit.
"Some credits, with the council tax payers permission, are offset against other outstanding council debts."
It comes after there has been a rush in families downsizing across the region due to the controversial bedroom tax in a bid to avoid a cut in their housing benefits.
Bedroom tax started in April 2013 and under the welfare reforms, anyone in council or social rented housing faces a 14 per cent or 25 per cent cut in their housing benefit if they have one or more spare bedrooms – meaning families potentially paying hundreds of pounds extra a year in rent unless they move to a smaller home.
Walsall North MP David Winnick said the Prime Minister should be 'ashamed' of the controversial bedroom tax at Prime Minister's Questions last month and told David Cameron it will be remembered just like the Tory poll tax.
The policy was intended to encourage people to trade down to smaller homes, freeing larger ones up for families, but has been heavily criticised because of a lack of smaller homes for people to go to.
Walsall Council is also looking to make £29 million in savings next year and £86m over four years.
Under the controversial budget proposals, 487 jobs could be lost and children centres and libraries could close.
