A new £200,000 pilot project is set to help Scots struggling with council tax debt. The funding from the Scottish Government will be used by Citizens Advice Scotland (CAS) to better understand why people fall into arrears and work with local councils to reduce and prevent this type of debt.
Citizens Advice Bureaux in Renfrewshire, Clackmannanshire and the Scottish Borders will use the funds to test new ways of helping people manage their debts. They aim to provide targeted support to individuals and simplify the referral process between councils and advice services.
Housing Minister Paul McLennan launched the project during a visit to Roxburgh and Berwickshire Citizens Advice Bureau. He said: “We know many people are struggling in the cost-of-living crisis and that is why we are targeting resources at those most in need.”
“Council tax debt is a significant issue, and one that particularly affects the most vulnerable.” He added, “The three bureaux involved in these pilots have established relationships with their local authorities. This funding will help build on those connections to help individuals tackle problem debt and also provide valuable learning on how public sector debt can best be managed.”
Mr McLennan said: “Advice services are critical to Scotland’s communities, supporting people to understand their rights and entitlements, maximising incomes and helping to reduce poverty.” He also revealed that over £12.5 million will be invested in advice services this year.
Myles Fitt, CAS financial health strategic lead, welcomed the funding. He highlighted that council tax debt is the “single, biggest debt issue that clients bring to the CAB service each year”. He added: “The cost-of-living crisis is only worsening this problem, so we welcome the opportunity this funding provides to make a difference to peoples’ lives and financial well-being.”
He concluded by saying: “Through working in partnership with councils, the three bureaux involved in this pilot will bring their deep insight into the factors and barriers that lie behind council tax debt to develop joint solutions that will help those in arrears now and in the future.”
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