Millions of households across the UK are at risk of falling into council tax debt, according to a new report by StepChange Debt Charity.
Research carried out by YouGov found that one in four UK adults – around 12 million people – fear they will be unable to pay their council tax over the next six months. Rising living costs were named by 70% of respondents as the main reason behind this growing financial strain.
The scale of the problem is already stark. StepChange revealed that 1.6 million people are currently behind on their council tax, while total arrears have surged to £6.6 billion. This marks a rise of £600 million in just one year and a 50% increase compared with pre-pandemic levels.
Council tax debt is now the second most common type of arrears among StepChange clients. The charity’s data shows that 35% of people seeking its support are struggling with council tax, with average debts climbing to £2,129 – nearly double the level recorded in 2019.
The charity has raised concerns that outdated enforcement rules are worsening the crisis. Under current regulations, missing just one payment can result in councils demanding the full year’s bill upfront. StepChange warns this system is pushing already vulnerable households into deeper hardship.
The findings highlight the urgent need for reform to protect millions of families facing the growing burden of council tax debt amid the UK’s ongoing cost of living crisis.
