Croydon Council, facing financial difficulties, plans to pursue unpaid council tax from benefit claimants by seeking legal orders to dock their benefits payments. Due to the pandemic, individuals on council support schemes had not been pursued for arrears, resulting in £3.6 million in uncollected tax.
The council now proposes using "benefit attachment" orders to recover approximately £400,000 in the next year by applying up to 200 orders monthly. While critics, including Labour, express concerns about the plan during the current cost-of-living crisis, the council asserts it will first attempt to reach arrangements with those in arrears before deducting benefits.
Croydon has been grappling with significant debt and budget deficits, imposing record increases in council tax to address its financial woes.