Council tax debts taken straight from pay in Dudley pilot

The borough’s council could recover an extra £600,000 each year by targetting people who do not initially pay up.

Dudley Council is already one of the country’s top performing authorities for collecting money, with almost 99 per cent of tax recovered each year.

But council bosses want to make their service even more efficient with this new scheme.

It would see the council work with HMRC, the government’s tax office, by sharing employment information.

Residents eligible to pay council tax will be contacted and could have their debt deducted directly from earnings.

Wolverhampton Council has also been chosen to take part in the trial.

It came after unpaid council tax cost Wolverhampton taxpayers almost £6 million last year.

Dudley Council cabinet member, Councillor Steve Clark, who oversees finance and legal services, said: “We have an excellent track record when it comes to collecting council tax – we are one of the best in the country.

“But there is always that extra half a per cent, which is still a lot of money, and should be used to pay for services for the people of this borough.

“I hope this scheme will allow us to bring some of that unpaid debt back in and use it for its proper purpose.”

The scheme has been made possible through new rules under the Digital Economy Act 2017.

It will be piloted for one year before being reviewed.

A decision will then by made nationally on a future roll out of the scheme to all councils in England and Wales.

Dudley Council earns more than £120 million through council tax each year which is spent on vital services.

The local authority already works closely with debt advisors to support residents who are struggling with debt.

Residents can’t pay council tax due to difficult circumstances can find out about support on the council’s website at www.dudley.gov.uk.