William Eichler 02 September 2025

Millions at risk of council tax debt, report warns

Millions at risk of council tax debt, report warns image
Council tax bill © Yau Ming Low / Shutterstock.com.

One in four UK adults fear they will be unable to pay their council tax over the next six months, new research from StepChange Debt Charity reveals.

Polling by YouGov found that 12 million people are worried about keeping up with payments, with 70% citing rising living costs as the main reason.

Already, 1.6 million people are behind on council tax, while total arrears have soared to £6.6bn – up £600m in the past year and 50% higher than before the pandemic.

StepChange’s client data shows council tax is now the second most common type of arrears, with 35% of clients struggling and average debts reaching £2,129 – almost double 2019 levels.

The charity warns that outdated enforcement rules worsen the problem, as councils can demand a full year’s bill after a single missed payment, a practice that leaves many at risk of deeper financial hardship.

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