Five million households have missed a council tax payment

Recent findings reveal that millions of households are struggling to pay their council tax, with arrears hitting £6bn.

An exclusive Daily Mail survey conducted by Opinium on behalf of Lowell estimates that around five million people – or one in ten – have at one time fallen behind on payments to their local authority.

Two in five have faced legal action over council tax debt – far higher than those with other forms of priority and non-priority arrears. 

Worryingly, almost a quarter of those in debt to their local authority have reported aggressive collection practices.

John Pears, UK CEO at Lowell, said: “Council tax debt is an issue which affects countless individuals and families across the UK. With so many people in arrears and experiencing mental health challenges, it’s clear the current system is failing.

“With council tax rates rising across the board, we must consider the profound impact on people’s lives. This increase can push families already on the brink into debt or deepen existing financial struggles.”

Council tax rises

The rise in those struggling with council tax arrears comes ahead of April’s bill rises.

Most councils plan to increase charges by the maximum permitted amount of 4.99%, with just a handful choosing to freeze or opt for smaller rises.

Six councils—Bradford, Newham, Windsor and Maidenhead, Birmingham, Somerset, and Trafford—have been granted permission to raise their bills by up to 10% because they need additional resources to keep “basic services running.”

Current collection practices

If someone misses a single council tax payment, they can quickly be asked to pay the full annual amount. This rapid escalation can lead to more debt and stress for those already struggling.

Time for change?

We believe that reform is needed. Councils should follow the approach of other creditors by offering more support to those in financial difficulty. Enforcement agents should only be used as a last resort.

What should you do if you’re in arrears to your council?

It is important to deal with council tax arrears quickly so the debt does not get bigger.

Council tax is a priority bill because not paying it can lead to serious consequences, such as having money taken directly from your pay or benefits, or a visit from a bailiff. It’s more important than non-priority debts like credit cards or personal loans because local councils have strong legal powers to enforce payment.

Speak to your local council

Check how much you owe. You can do this by looking at your council tax bill or asking your local council.

Next, talk to your council. Call or visit them and explain that you are struggling to pay. They may let you pay in smaller amounts over time, called a payment plan, which can help make the debt easier to manage.

Council tax discounts

If you cannot afford to pay, you might be able to get a discount or help with your council tax. Some people, like those on low incomes or certain benefits, might be entitled to a reduction. Check if you qualify by asking your council or use our free benefit checker.

Get debt help

If you feel worried about council tax arrears or don’t know what to do, contact us and we can help.

You can also find out more in this guide - What to do about council tax arrears