Ellie Ames 06 August 2024

Unpaid council tax surges to £6bn

Unpaid council tax surges to £6bn image
Image: ShaunWilkinson / Shutterstock.com

Council tax arrears have soared to £6bn a year, a sign that the collection process is ‘failing local authorities and taxpayers alike’, according to a report published today.

The total has leapt from about £2.5bn a decade ago, according to the Centre for Social Justice (CSJ).

The think-tank’s report calls for a ‘more proportionate’ approach to debt collection, with a clearer distinction between those who cannot pay and those who refuse to.

It found correlation between the use of bailiffs and cases involving income deprivation, and warned that the current system allows councils to quickly advance to enforcement.

The CSJ pointed out that in cases where councils instructed bailiffs between 2019 and 2022, the proportion that settled after being paid in full fell from 21% to 15%.

CSJ head of debt Matthew Greenwood said: ‘Some people won’t pay their council tax even though they have the money and they should face the full force of the law.

‘But our evidence shows that the majority of non-payers are unable to meet their commitments and the often harsh repayment methods used by many local authorities are making repayment rates worse, not better.’

SIGN UP
For your free daily news bulletin
Highways jobs

Advanced Social Worker - Emergency Duty Team

North East Lincolnshire Council
Up to £49,282 (depending on experience)
Make a difference when it matters most North East Lincolnshire
Recuriter: North East Lincolnshire Council

Initial Contact Point Worker - Emergency Duty Team

North East Lincolnshire Council
NJC25 £35,235
Can you be the first voice someone hears when they need it? North East Lincolnshire
Recuriter: North East Lincolnshire Council

Aspirations and Pathways Advisor (Kinship Zone)

North East Lincolnshire Council
NJC19 £32,061
Are you passionate about supporting young people to achieve their full potential? North East Lincolnshire
Recuriter: North East Lincolnshire Council

Strategic Lead Finance

North East Lincolnshire Council
LGE02 - £65,211
Looking for a role where your expertise can drive real change and shape the future of finance? North East Lincolnshire
Recuriter: North East Lincolnshire Council

Benefits Officer

North East Lincolnshire Council
NJC 11 £28,142.00
Housing Benefit and Council Tax Support provides support for Customers in the community. North East Lincolnshire
Recuriter: North East Lincolnshire Council
Linkedin Banner