Revd Paul Nicolson, the founder of Tax Payers Against Poverty, has brought a case to Tottenham Magistrates against Haringey Council, after central government cut funding to local services two years ago, which resulted in council tax benefit being reduced by 10 per cent.
Revd Paul claims 150 local authorities handed this shortfall directly onto residents who used the benefit, forcing a number of families into money problems over arrears.
He added that magistrates continue to enable the collection of arrears plus costs of up to £125, and the use of the bailiffs adding up to £420 fees.
After listening to the evidence, the judge at Tottenham Magistrates reserved her decision, with a judgement on the case expected next week.
Speaking after a hearing on Thursday Revd Paul Nicolson said: "We feel that our case was heard, and very sympathetically received, there was no very substational opposition and we'll get the decision next week we hope.
"I asked the Magistrates - how did they arrive at £125? And they did not tell me and it turned out subsequently that they did not know.
"So today what we've been doing is ensuring that the law requires magistrates to investigate properly the costs and have a statement available, to somebody like myself who wants to know how they arrived at £125 costs, [so this] is properly carried through."
Listen to Revd Paul Nicholson speaking to Premier's Hannah Tooley.
