You could be fined up to £280 for failing to tell council about new council tax or benefits information, under new proposals.

Under the new proposed policy, you would get a £70 penalty for failing to supply the council with the necessary information to establish your council tax liability.

And you could then be slapped with a further £280 fine if you do not respond to an additional request for information after this £70 charge.

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The plans also include a £70 fine if you do not notify the council of changes to your circumstances which affects your entitlement to a council tax reduction, discount, or exemption.

Additionally, a £50 fine is planned if you do not tell the council about changes to circumstances which affect your housing benefit.

Extenuating circumstances will be considered on a case-by-case basis.

Reading Borough Council (RBC) said: “While the vast majority of council tax payers and housing benefit claimants are law abiding and inform the council of any change in their circumstances which could affect their eligibility for a discount, exemption or reduction, or affect the amount of housing benefit paid to them, some do not.

“Where this happens it can incur significant costs to the council.”

In 2019/20, housing benefit overpayment invoices totalled £1,793,332 as a result of claimant error, either due to delays in notifying the council of changes that affected entitlement or incorrect information being supplied.

In addition, council tax support totalling £326,268 was cancelled under the same circumstances and had to be re-billed and recovered.

The proposed new policy “aims to encourage council tax payers and benefit claimants to contact the council as soon as there is a change in their circumstances, so that the correct Council Tax bill or benefit payment can be made, and to reduce instances of fraud”.

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Any income from the fines would be re-invested into the revenues and benefits service.

The proposal has been submitted ahead of the council’s Policy committee on Monday (February 15).

Reading Borough Council offices

Reading Borough Council offices

The committee will also vote on whether to endorse the council’s budget for 2021/22 and three-year financial strategy, which includes plans to increase council tax by the max of 4.99 per cent.

This includes three per cent reserved for adult social care funding.

RBC’s full council will then vote on whether to approve the budget and medium-term financial strategy.