Council chief warns £500 of rent arrears is 'tipping point to disaster'

Low income households are at greatest risk of falling into unmanageable debt once their rent arrears cross the £500 threshold, a council chief has warned.

Chris Elliott (pictured), Chief Executive of Warwick District Council, says a study of council rent arrears levels within the District indicates what could be regarded as a ‘tipping point to disaster’, which councils need to be more proactive in tackling before it becomes too late.

His call comes just days after a national debt charity painted an increasingly desperate picture of debt-ridden Britain.

The Consumer Credit Counselling Service (CCCS) said a record 335,323 people contacted its helpline last year but around a third of them could not be helped as they had no practical means of repaying their debts.

Mr Elliott said: “We need to avoid letting people fall into a pit of debt so deep they can’t climb out.

“Councils must learn to develop early warning systems and ways of stepping in sensitively to help low income households, rather than waiting for things to reach that tipping point to disaster.”

A cross-council study was undertaken this year involving Chris Elliott and the portfolio holders for housing and development.

The study looked at patterns of rent arrears and other factors affecting households with high levels of debt.

It found that family breakdown, coupled with a failure to claim the benefits available and limited access to affordable credit facilities were often at the heart of the problem.

Mr Elliott added: “What we found by studying patterns of rent arrears and then looking at other information we have access to about people’s circumstances was that once people have built up around £500 in rent arrears, their debt problems begin to spiral out of control.

“Very often though, another council department may have valuable information about a family’s circumstances, such as national benefits being withdrawn after a family breakdown, that could help us identify vulnerable individuals and step in early to ensure they are getting the help and support they need.”