Removal of the sanction of imprisonment for non-payment of council tax consultation

At least 62 people were imprisoned in England and Wales during 2016-2017 with nearly a third being from Wales. Cases of council tax debt have increased following the abolition of council tax benefit and the Welsh Government has developed a Council Tax Reduction Scheme (CTRS) to support those on low incomes.

The Welsh Government has now put forward plans to end prison time for non-payment of council tax.

The view is that getting into debt should not be treated as a crime and that imprisonment isn’t solving the issue but in many cases makes it worse.

The Welsh Government wants the law amended so that people can’t be jailed for non-payment of a civil debt. The current maximum sentence for being found guilty of ‘wilful refusal’ or ‘culpable neglect’ in respect of unpaid council tax is three months.

How much does prison cost?

The average cost of imprisonment in 2016/17 for a 90-day council tax prison stint will cost the taxpayer approximately £8,700. Finance Secretary Mark Drakeford believes that jail is an ‘outdated and disproportionate response’ to civil debt as noted in his full statement below.

Statement from – PROFESSOR MARK DRAKEFORD, FINANCE SECRETARY

"My view is that getting into debt is not a crime. The sanction of imprisonment is an outdated and disproportionate response to a civil debt issue. There is significant additional cost to the public purse of imprisoning individuals and such action does nothing to address the reasons for the debt owed to the local authority or to reduce the debt. In many cases, it makes the situation worse.

"We must also consider the longer-term impact on the well-being and future prospects of people who are committed to prison and the effect on their families. There is also a knock-on impact on other public services, as more support is often needed by someone who is committed to prison and their family."

The consultation is part of the next steps in making council tax a fairer and more proportionate tax.

Our view is that there needs to be a sanction above and beyond the seizure of goods (where no goods are available) to deal with a small but hard core of non-payers, not all of whom are in the dire financial straits portrayed by Welsh Government.

Perhaps, instead of a custodial sentence, those found guilty of wilful refusal or culpable neglect might be ordered to undertake community service? In terms of non-payment of council tax, that would make the punishment fit the ‘crime’.