VULNERABLE residents with council tax debts should be given breathing space to repay arrears rather than face the threat of bailiffs, two charities say.

Debt charities StepChange and the Money Advice Trust have reported rising levels of council tax debt.

They argue that increased use of bailiffs by councils could deepen these residents’ financial problems.

The Local Government Association said bailiffs were only used as a last resort.

The LGA said that cuts to local government funding meant that some people who had previously been exempt from paying council tax were now having to pay.

“Significant cuts mean many [councils] have had little choice but to reduce council tax discounts for the working-age poor or low-income families to avoid finding even more savings from spending on local services to meet the shortfall,” said Coun Claire Kober, of the LGA.

The two charities say about a quarter of callers to their debt services have council tax arrears.

StepChange said that its clients were typically in arrears by £961 last year, up from £717 in 2011. There was a slight fall in arrears in 2013, but otherwise there had been a sharp rise each year between 2011 and 2015.

The charities argue that the threat of bailiffs causes extra stress and anxiety to those in debt, so there should be a delay before these collection agencies are called in.

“It may come as a surprise to people that public bodies are more aggressive in pursuing debts than many private companies,” said Mike O’Connor, the chief executive of StepChange.

“This counterproductive approach needs to stop immediately and be replaced with one that is fairer and more constructive.”

Some councils rule out bailiff action against anyone who receives council tax support - as they are already considered to be financially vulnerable. Such a policy should be adopted nationwide, the charities said.

They also want a statutory breathing space scheme that guarantees anyone seeking debt advice is given a temporary freeze on debt interest and charges, and that any enforcement action is halted.

The LGA argued that giving people more time to pay could have unintended consequences.

“We agree that bailiffs should only ever be used as a last resort. Before the situation reaches a stage where bailiffs are involved several letters should have been written, people should have been encouraged to apply for financial support, and efforts should be made to arrange new payment plans or to attach the debt to a salary,” said Claire.

“However, there is always a risk that the longer a debtor goes on without paying, their repayment instalments will become even more difficult for them to manage.”

A spokesman for the DCLG said: “Every penny of council tax that is not collected means a higher bill for everyone in the area so we expect councils to be sympathetic to those in hardship, but to chase up outstanding debts, while delivering a fair deal for local families.”