Understanding the impact of Council Tax Interventions in Wales: the removal of the Sanction of Imprisonment for Non-Payment of Council Tax

The research was carried out in 2022 and consisted of desk-based research, quantitative statistical analysis and interviews with key stakeholders.

Main findings

• There is a high level of awareness within councils of the removal of the sanction of imprisonment for non-payment of Council Tax.
• There appeared to be variation across councils in the level of change in enforcement activity resulting from the measure. The main changes stated by councils were an increase in the use of charging orders, more referrals back to debt collectors and an increase in write-off of Council Tax debt.
• Citizen’s Advice Wales were concerned that some Welsh councils had still not updated communication in light of the removal of the sanction of imprisonment for non-payment of Council Tax.
• Comparison of Welsh council collection rates from 2017 – 2018 to 2021 – 2022 with control groups showed that average Council Tax collection rates in Wales were higher than in England, Scotland, and when compared to similar councils in England. Welsh councils were the only group to implement the non-sanction of imprisonment within the comparison timeframe.
• The removal of the sanction of imprisonment for non-payment of Council Tax has led to challenges for councils in engaging with particular groups of non-payers.
• Citizens Advice Wales noted that the removal of the sanction of imprisonment had a positive impact as it provided the space for debtors to pay at a rate they can afford. It was suggested that prior to the removal of the sanction there was evidence that some debtors were so concerned about the use of the sanction of imprisonment that they repaid debt at a level that caused harm to themselves.