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Council tax arrears hit record £8.3bn as millions struggle to pay
Money stacked on top of a council tax bill

COUNCIL tax arrears across Britain have reached a record total of nearly £8.3 billion, figures revealed today, underlining the “deepening financial strain on households.”

According to new data from the Ministry of Housing, Communities and Local Government, arrears of tax owed to local authorities in England have reached more than £6.6bn, while figures from Scotland and Wales put arrears at £1.5bn and £0.16bn respectively.

Analysis by Debt Justice found that total council tax debt has increased by 79 per cent over the last five years.

In the past financial year, arrears rose by £802 million — up 11 per cent on the previous year.

Wales has experienced the sharpest increase, with arrears surging by 170 per cent since 2019-20, almost tripling from £59m.

England has seen an 85 per cent rise over the same period, while Scotland’s total arrears have grown by 51 per cent.

Recent research by Debt Justice found that 4.4 million people across Britain are currently behind on their council tax payments — up from 3.2 million just a year ago.

The charity’s analysis shows that one in three people in arrears are living below the poverty line, with nearly four in five coming from households in the bottom half of income earners.

Council tax is expected to rise by 5 per cent a year to fund local services, a move likely to deepen hardship for struggling households.

Debt Justice’s Toby Murray said: “[Most] 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.

“Rather than help, councils are sending in the bailiffs — punishing people for struggling with their bills.”

He urged councils to end the use of bailiffs for council tax debt collection and to introduce urgent reforms, including a duty of care to protect the people who are most at risk.

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