Council Tax is calculated using out of date property values (which were outdated when Council Tax was introduced) and is often set at a rate that is unaffordable for people on low incomes. This means that people are forced to make a choice between eating, heating, paying their rent and paying their Council Tax. Local authorities will seek a Liability Order if a person finds it difficult to pay their Council Tax and this adds to their debt burden. Liability Orders are impossible for a low waged resident to defend and local authorities know this. If one applies for Council Tax Support, they are required to pay their Council Tax until they are assessed. This means that some people face court action and even financial ruin.
Currently, a person on a low wage living next door to someone with a higher income pays the same amount in Council Tax. This is unfair on the people that can least afford it.