council tax advice for a charity

[stephen22]

Hi
Can someone please help with a query i have received about council tax. I work for a charity and the following has come up.

We have a client who is £4500 in arrears since 2009 at 3 addressees.
They have a mental health condition to which the gp has signed a form saying they are permanent and have been so since an initial 2003 diagnosis and a formal diagnosis in 2009.
They have been unable to manage due to anxiety.
They are a lone parent with children of 5, 16(in school) and 20 (working, but also acts as carer when needed)
They are in receipt of high rate care of DLA and this is until 2017.

The query is.....
The council want the arrears at £250 a month, this is a huge amount and the council admit not having up to date income expenditure.
Can they use the eldest income in means testing even though he does not pay rent.
Although there are arrears, the client was unaware he could claim CTB and when he did he was confused about the amounts he was getting and paid.
He is now classed as vulnerable on the council system, only found out when I called them, they also said that they were under budget and needed to get money back.
He wonders what can be done, he is now tryign to sort his debts but this matter is causing stress.
I am considering the fact they have not treated him in accordance with local policy.
The person dealing with it has threatened a means enquiry, stating they will go in the favour of the council. They dont seem to care about this and I feel taht there has not been a lot of support.
I am sure there is a way that they need to treat vulnerable people like my client. This is so confusing.
They look a s though they will be exempt, but what can be done about paying the arrears.
He is in the process of dealing with his debts, it got out of hand as he could not manage, btu the debts all fall after a diagnosis that created a huge impact.

Any views please ........ am lost as what to do to help

[Hurricane Puffrose]

Re: council tax advice for a charity

BUMP:santa_cheesy:

[ploddertom]

Re: council tax advice for a charity

Do they get Single Person Discount at all?

[IanM]

Re: council tax advice for a charity

""The person dealing with it has threatened a means enquiry, stating they will go in the favour of the council. They dont seem to care about this and I feel taht there has not been a lot of support.""

Submit a SAR to the council for all the paperwork regarding the account, for them to start threatening it means they may know that the amount is not really owed when all the facts are taken into account and are hoping you will just pay up without questioning any aspect of the outstanding bill.

And the reason for this is:

""He is now classed as vulnerable on the council system, only found out when I called them, they also said that they were under budget and needed to get money back.""

If they were aware of your clients mental health issues at the time they should have advised him properly and made sure he understood his rights regarding eligibility for CT benefits.

If they have since been made aware of his mental health issues and the date they started, supported by a letter from the doctor, then they should look again at the case and amend the bill accordingly taking into account any benefits he should have been entitled to at the time the bills were issued.

[bluebottle]

Re: council tax advice for a charity

If the Council involved have admitted to taking money they knew they were not legitimately due, the money taken must be repaid immediately or credited to the person's CT account, as the person directs, not what the Council want. The fact the Council is "under budget" is irrelevant. If they have taken money they are not due, they must return it to the person. The fact that the person has profound mental health problems will not go in the Council's favour and could lead to allegations of them taking advantage of this. This could lead to a formal investigation into the person's case and that of others in similar circumstances.

If the debts arose after a confirmed diagnosis was made, this could have a bearing on the Council's ability to recover any alleged arrears. The child who acts as carer would be entitled to Carer's Allowance and if they are not currently in receipt of this, it is strongly recommended a claim be submitted to the DWP's Disability & Carer's Service without delay.

Also, is the person subject to a Registered Power of Attorney (RPOA) under the Mental Capacity Act 2005 as a consequence of their mental health issues and, if so, who is the person's appointed deputy/attorney? This should be investigated if it has not already been so investigated.

[labman]

Re: council tax advice for a charity

Have you read the MALG site? http://www.malg.org.uk/debtmentalhealth.html

I've linked to the relevant page. At the bottom are forms which can be used to ask for debts to be written off. Through my charity I've succeeded in having debts as high as £18000 written off using these forms. It may be different in this case as the debt is to the public purse, but as long as your client can keep up to date with their current CTax, they really should accept 'unusual' repayment proposals due to your client's illness.

Have they any other financial issues - if so,I would suggest you aim to resolve them all at once.

[stephen22]

Re: council tax advice for a charity

Thank you all

They are getting single person discount. I think they are jsut bogged down by it all. They have said they did not understand the whole system and that they have had failed payment plans. We will issue a SAR and also ask them to review the case as the have been diagnosed for a long time.
they were not aware of the benefits system, they were also medically retired from a public service with Mental Health problems.
Thank you all so much, is there any legislation that can be used

[stephen22]

Re: council tax advice for a charity

Hi
The debts did arise after diagnosis, there are two diagnosis confirmed by the gp, one in 2003 for PTSD and then in 2009 for a personality disorder. There is no RPOA, and the carer/child earn over £100 a week.
The client is ex services and is like so many, good one day, very bad the next, it is heartbreaking that we see so many cases like this.
Thank you for your help

[labman]

Re: council tax advice for a charity

PLEASE read the MALG stuff. I run my own consumer debt charity and have dealt with many of these cases. There's loads of stuff that can be used. I also happen to be a public servant etired on health grounds.

[ploddertom]

Re: council tax advice for a charity

The client is ex services and is like so many, good one day, very bad the next, it is heartbreaking that we see so many cases like this.
Thank you for your help

British Legion perhaps?