Council tax arrears have surpassed previous highs as they surge to £9.3bn in Britain, figures have found.

Research from charity Debt Justice has confirmed that the last financial year has seen arrears across Britain increase by 12% (almost £1bn) from the year before, and by 65% in the past five years.

While arrears in England have hit £7.4bn, data from the Ministry of Housing, Communities and Local Government (MHCLG) has confirmed that Wales’ total has jumped the most significantly, with its arrears (currently sitting at £0.32bn) having soared by 103% over the last half decade.

Furthermore, council tax in England and Wales has risen at above inflation rates, according to Debt Justice’s analysis.

As a result, ‘billpayers are paying hundreds of pounds more than if bills had risen in line with inflation’.

Although collection rates have been recorded as over 95% across the three nations, Debt Justice has revealed that rates have noticeably declined in the last decade – the biggest decrease being in Scotland (2.5 percentage points), followed by Wales (1.9 percentage points), and then England (1.5 percentage points).

Toby Murray, Policy and Campaigns Manager at Debt Justice said: ‘Successive governments have buried their heads in the sand over a crisis in council tax, but record levels of arrears means they can no longer ignore it.

‘People aren’t avoiding council tax, they simply can’t afford it. Many are on low incomes and living in poverty. Instead of offering support, councils are sending in bailiffs or Sheriff Officers in their millions, punishing people for struggling with their bills.’

He added that reforms must go further and called for collaboration across all governments to eliminate the use of bailiffs, while also ensuring councils are backed in supporting those struggling with debt.  

Jo Barker-Marsh, member of the Debt Justice Greater Manchester Organising Group, said: ‘When we’re talking about billions in arrears, we have to question whether council tax is a fair or appropriate tax.’

She added: ‘No amount of bailiffs, no amount of court dates is going to make people pay money they don’t have. This is just survival, and it’s a dreadful state of affairs.’

An MHCLG spokesperson said: ‘Council tax collection remains high across England, but we recognise many still need support in paying their bill.

‘That is why we’re introducing reforms to make the system fairer, such as giving households more time to settle their bill and requiring councils to provide suitable repayment plans.’