Council tax arrears across the UK have soared to nearly £8.3 billion, according to a new analysis of government statistics, highlighting the deepening financial strain on households.
Figures from the Ministry of Housing, Communities and Local Government reveal that residents in England alone owe £6.6 billion in unpaid council tax.
In Scotland, arrears have reached £1.5 billion, while Welsh households owe approximately £160 million.
The data, compiled by the debt charity Debt Justice, shows a staggering 79% rise in council tax debt over the past five years.
The organisation has warned that the growing arrears are largely driven by poverty and low incomes, rather than deliberate non-payment.
Toby Murray, Policy and Campaigns Manager at Debt Justice, commented: “The vast majority of people in council tax arrears are not refusing to pay – they simply can’t afford to. These are often individuals and families on the lowest incomes, many already living in poverty.”
Mr Murray called on local authorities to cease the use of bailiffs in collecting council tax debts and to implement urgent reforms, including a duty of care to support vulnerable residents.
In response to mounting concerns, the Government has recently opened a public consultation on proposed reforms to the way council tax debt is collected.
Cllr Pete Marland, Chair of the Local Government Association’s Economy and Resources Board, responded to the announcement:
“Councils have introduced a wide range of fair recovery practices and offer support to households facing financial difficulties. The consultation is a welcome opportunity to ensure these efforts are strengthened and standardised.”
With the cost of living crisis continuing to affect households nationwide, campaigners are urging swift action to prevent further hardship and ensure council tax collection is handled with compassion and fairness.
