William Eichler Thursday, June 26, 2025

Council tax arrears hit £8.3bn

Council tax arrears hit £8.3bn image
A magnifying glass, a keyboard, and a document labeled 'COUNCIL TAX BILL' resting on a financial spreadsheet. © Drozd Irina / Shutterstock.com.

The total amount of council tax arrears owed by households across Britain has nearly reached £8.3bn, an analysis of Government figures has revealed.

Data published by the Ministry of Housing, Communities and Local Government show that council tax arrears in England have reached £6.6bn.

Recent figures from Scotland and Wales put arrears at £1.5bn and £0.16bn respectively.

Analysed by the charity Debt Justice, the data also show that arrears have increased by 79% over the last five years.

Toby Murray, policy and campaigns manager at Debt Justice, said: ‘The vast majority of people aren’t avoiding council tax, they simply can’t afford it. People in council tax arrears are overwhelmingly on low incomes, and many are living in poverty.’

He added: 'Councils should end the use of bailiffs for council tax debt collection and instead introduce urgent reforms, including a duty of care to protect people most at risk.’

The Government last week launched a consultation on proposals aimed at overhauling council tax debt collection practices.

In response to the launch of the consultation, Cllr Pete Marland, chair of the Local Government Association's Economy and Resources Board, said that councils have ‘implemented a wide range of measures to ensure that recovery practices are fair, and support is available for households who are struggling to pay their bills.’

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