Greens bid to halt hike in Council tax debt fees for vulnerable Scots
The Scottish Greens are seeking to stop a hike in fees that will line the pockets of rich corporate investors at the expense of some of Scotland’s most vulnerable Scots.
At the Equalities, Human Rights and Civil Justice Committee today, Scottish Green MSP Holly Bruce is seeking to halt a Scottish Statutory Instrument that would allow sheriff officers to increase fees added to council debt collections consistently by 12-15%. This would include even greater hikes for people living in rural communities.
If allowed to go ahead, this increase would hit those with the smallest debts – under £1500 – the hardest.
Research by the party found that for claims of £1500 or less, postal diligence fees would rise from £29.27 to £43.92, a 50% increase.
For serving court documents in person, on claims of £1500 or less, the fee rises from £61.70 to £87.84 – a 42% increase.
Scottish Green MSP Holly Bruce said:
“If this is introduced it will further punish the most vulnerable people who are already struggling with the likes of council tax debt.
“This does not align with the Government’s intention to make council tax debt recovery processes fairer. When the new Housing Act passed through parliament, the Cabinet Secretary for Housing acknowledged ‘the inherent unfairness in the current system’ of council tax debt recovery and agreed to consult those affected.
“It also puts Scotland at odds with England where the costs of the process are being cut.
“In the middle of a cost of living crisis, those who are struggling to repay debts should not be hammered by extra fees that will ultimately go to debt firms with turnover in the millions.
“Everyone has the right to an adequate standard of living. When private debt collection firms are emboldened to increase fees, this can cause a huge amount of stress, anxiety and hardship.
“It will be women fleeing domestic abuse, people being evicted from their homes, and people in vulnerable positions who pay the price for this. It also unfairly impacts rural communities.
“The Scottish Greens will always stand with the most vulnerable in our society and I want the opportunity to stop this before it is swept through without any discussion.”
“Rather than changing the system for the better, this fee increase would make things even worse and leave vulnerable people in a cycle of debt that they will find it even harder to get out of.”