Wed, 25 Jun 2025

Wed, 25 Jun 2025 People owe billions in council tax ahead of rises

Figures show households are more than £8bn in arrears, as campaigners call for a change of approach.

* £6.6bn is owed in unpaid council tax in England, with an additional £642m added in the past year.
* The total cumulative amount owed across England, Scotland, and Wales has exceeded £8bn.
* Councils can raise council tax by up to 5% a year, although they can exceed this cap if they hold a local referendum or get central government approval.
* The Treasury assumes a 5% annual increase in council tax, which would result in continued rises for struggling households.
* Charities are calling for a more sympathetic approach to council tax debt collection, citing the use of bailiffs as "punishing" for those who are genuinely struggling to pay.
* Councils collected £41.2bn in council tax in the 12 months to April, an increase of £2.8bn (7.2%) compared to the previous year.
* The amount cumulatively owed has risen by 11% over the same period.
* Charities have urged people not to ignore council tax bills and demands, and are calling for reforms to the debt collection process.
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