More than £9bn is now owed to councils in unpaid council tax, newly-published data shows, as households across the country continue to buckle under financial pressure.
By the end of March, uncollected council tax in England alone had reached £7.4bn, with separate figures from Scotland and Wales pushing the total even higher. The latest government data reveals that £2.2bn of council tax levied in England during the financial year to the end of March went unpaid – though £43bn was collected, representing a collection rate of 95.6%, according to the Ministry of Housing, Communities and Local Government.
“Uncollected council tax has risen above £9bn, with charities warning of an affordability crisis and government planning reforms.”
Charities say the figures expose a deepening crisis. Vikki Brownridge, chief executive of debt charity StepChange, said: “Our advisors know all too well just how deep the council tax affordability crisis runs. With one in three of those coming to StepChange behind on this bill, these latest figures are no surprise to us and point to a system that perpetuates debt with little to no constructive route out.”
Although non-payment can in extreme cases lead to a prison sentence, various discounts and support measures exist – but many people are unaware of them. Discounts include a 25% reduction for adults living alone, full exemption for full-time students, and the option for people with disabilities to apply for a lower council tax band. Those on low incomes may also be eligible for Council Tax Support, though it requires making an application. Charities, such as the National Debtline, argue that local authorities need more funding to provide support, which varies significantly between areas. They have long campaigned for councils to stop using bailiffs and threats of court action and prison, saying it deters people from seeking help.
In April, the government published plans to overhaul the council tax collection system in England. Proposed changes include spreading payments over 12 months instead of the current 10, giving people struggling to pay 63 days – roughly two months – to settle their bill, and requiring councils to work with them on a sustainable repayment plan. Currently, many councils demand the full year’s payment after just one missed instalment. The reforms could be introduced next year.