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New analysis from Debt Justice reveals that total council tax arrears across Britain have reached a record £9.3 billion, underlining the deepening financial strain on households amid the ongoing cost of living crisis. In the past financial year alone, arrears rose by nearly £1bn – a 12% jump from the previous year and total council tax arrears across Britain have increased by 65% over the last five years.
Figures released today by the Ministry of Housing, Communities and Local Government show that council tax arrears in England have reached £7.4bn, while recent figures from the Scottish and Welsh governments put cumulative arrears at £1.6bn and £0.32bn respectively.
Wales has seen the biggest increase in council tax arrears, with an increase of 103% over the last five years, more than doubling from £157m in 2020-21. Levels of arrears in England and Scotland have increased by 67% and 52% respectively over the last five years.
Debt Justice’s analysis also shows that Council Tax has increased at above inflation rates in England and Wales. For the current financial year, the average Band D property pays £2,392 in England, and £2,283 in Wales. This is an increase of 56% and 66% respectively since 2016-2017. Meanwhile, CPI inflation was 42% over the same period, meaning billpayers are paying hundreds of pounds more than is bills had risen in line with inflation.
Scotland has increased council tax roughly in line with inflation, although they have seen significant increases in recent years.
Collections rates in general remain high, at above 95% across all three nations. However, all have seen a marked decrease in rates over the last ten years. Scotland has seen the biggest drop, with collection rates falling by 2.5 percentage points between 2015/16 and 2025/26. England and Wales saw their collection rates drop by 1.5 and 1.9 percentage points respectively.
Toby Murray, Policy and Campaigns Manager at Debt Justice said:
“Successive governments have buried their heads in the sand over a crisis in council tax, but record levels of arrears means they can no longer ignore it. People aren’t avoiding council tax, they simply can’t afford it. Many are on low incomes and living in poverty. Instead of offering support, councils are sending in bailiffs or Sheriff Officers in their millions, punishing people for struggling with their bills. Recent government reforms from England and Wales are a good start, but they must go further. All governments should come together to immediately end the use of bailiffs or Sheriff Officers for council tax debt, and instead work with councils to support people in debt.”
Both the Welsh and UK governments have announced changes to council tax debt collection, including changing timescale before a court order can be requested, and putting caps on certain fees.[2][3]
Jo Barker-Marsh, member of the Debt Justice Greater Manchester Organising Group, said
“When we’re talking about billions in arrears, we have to question whether council tax is a fair or appropriate tax. I remember the horrible, churning, daily fear I faced in council tax debt. Politicians need to listen. At the moment we’re being attacked from every side, asked for money that we just don’t have. No amount of bailiffs, no amount of court dates is going to make people pay money they don’t have. This is just survival, and it’s a dreadful state of affairs.”
Council tax debt is the biggest single debt collected by enforcement agents, or bailiffs.[4] In the last two years, referrals to bailiffs for council tax have increased by 30%.[5]
ENDS
Notes
[1] All figures below:
| Year | England Council Tax Arrears (£000s) | Scotland Council Tax Arrears (£000s) | Wales Council Tax Arrears (£000s) | Total |
| 2020-21 | 4,418,000 | 1,055,470 | 156,635 | 5,630,105 |
| 2021-22 | 4,966,000 | 1,136,010 | 172,883 | 6,274,893 |
| 2022-23 | 5,479,000 | 1,215,392 | 198,284 | 6,892,676 |
| 2023-24 | 5,982,000 | 1,323,940 | 223,806 | 7,529,746 |
| 2024-25 | 6,625,000 | 1,446,873 | 263,012 | 8,334,885 |
| 2025-26 | 7,390,000 | 1,609,143 | 318,299 | 9,317,442 |
| Increase since last year | 12% | 11% | 21% | 12% |
| Increase in 5 years | 67% | 52% | 103% | 65% |
| Source | https://www.gov.uk/government/statistics/collection-rates-for-council-tax-and-non-domestic-rates-in-england-2025-to-2026/collection-rates-for-council-tax-and-non-domestic-rates-in-england-2025-to-2026 | Debt Justice analysis of https://www.gov.scot/publications/council-tax-collection-statistics-2025-26/pages/4/ | Debt Justice analysis of https://www.gov.wales/council-tax-collection-rates-april-2025-march-2026-html | Debt Justice analysis |
England Band D Rates and Collection Rates
| Year | Band D (incl. social care & parish precepts) | 10y % increase | In year collection rate |
| 2015-16 | 1,484 | 97.1% | |
| 2016-17 | 1,530 | 97.2% | |
| 2017-18 | 1,591 | 97.1% | |
| 2018-19 | 1,671 | 97.0% | |
| 2019-20 | 1,750 | 96.8% | |
| 2020-21 | 1,818 | 26% | 95.7% |
| 2021-22 | 1,898 | 32% | 95.8% |
| 2022-23 | 1,966 | 36% | 96.0% |
| 2023-24 | 2,065 | 42% | 95.9% |
| 2024-25 | 2,171 | 48% | 95.9% |
| 2025-26 | 2,280 | 54% | 95.6% |
| 2026-27 | 2,392 | 56% | N/A |
| 10y increase in CT | 56.3% | 10y decrease in collections rate | -1.5pp |
| Council Tax | CPI Index | Adjusted figure | |
| 2016 | 1,530 | 100.2 | 1530 |
| 2026 | 2,392 | 142.1 | 2170 |
| £ | % | ||
| Above inflation | 222 | 10% |
Wales Band D Rates and Collection Rates
| Year | Band D (incl. social care & parish precepts) | 10y % increase | In year collection rate |
| 2015-16 | 1328 | 97.2% | |
| 2016-17 | 1374 | 97.4% | |
| 2017-18 | 1420 | 97.4% | |
| 2018-19 | 1492 | 97.3% | |
| 2019-20 | 1591 | 97.0% | |
| 2020-21 | 1667 | 48% | 95.7% |
| 2021-22 | 1731 | 49% | 96.3% |
| 2022-23 | 1777 | 50% | 96.1% |
| 2023-24 | 1879 | 53% | 96.0% |
| 2024-25 | 2024 | 59% | 95.6% |
| 2025-26 | 2170 | 63% | 95.3% |
| 2026-27 | 2283 | 66% | N/A |
| 10y increase in CT | 66.1% | 10y decrease in collections rate | -1.9pp |
| Council Tax | CPI Index | Adjusted figure | |
| 2016 | 1,374 | 100.2 | 1530 |
| 2026 | 2,283 | 142.1 | 1949 |
| £ | % | ||
| Above inflation | 334 | 17% |
Scotland Band D Rates and Collection Rates
| Year | Band D (incl. social care & parish precepts) | 10y % increase | In year collection rate |
| 2015-16 | 1149 | 97.7% | |
| 2016-17 | 1149 | 97.6% | |
| 2017-18 | 1173 | 97.7% | |
| 2018-19 | 1208 | 97.5% | |
| 2019-20 | 1251 | 97.3% | |
| 2020-21 | 1308 | 14% | 96.9% |
| 2021-22 | 1308 | 14% | 97.0% |
| 2022-23 | 1347 | 17% | 97.2% |
| 2023-24 | 1417 | 23% | 96.4% |
| 2024-25 | 1418 | 23% | 96.0% |
| 2025-26 | 1543 | 34% | 95.2% |
| 2026-27 | 1653 | 44% | N/A |
| 10y increase in CT | 43.9% | 10y decrease in collections rate | -2.5pp |
| Council Tax | CPI Index | Adjusted figure | |
| 2016 | 1,149 | 100.2 | 1530 |
| 2026 | 1,653 | 142.1 | 1629 |
| £ | % | ||
| Above inflation | 24 | 1% |
[2] Earlier this year, the English government has announced plans to modernise council tax enforcement: https://www.gov.uk/government/consultations/modernising-and-improving-the-administration-of-council-tax/outcome/modernising-and-improving-the-administration-of-council-tax-government-response.
[3] The Welsh government has made similar changes: https://www.gov.wales/new-rules-confirmed-fairer-council-tax-collection.
[4] https://enforcementconductboard.org/wp-content/uploads/2026/01/ECB-Insight-Report-2026-1.pdf
[5] https://debtjustice.org.uk/press-release/bailiff-referrals-for-council-tax-soar-by-30-in-two-years
Debt Justice (formerly Jubilee Debt Campaign) is a UK charity working to end poverty caused by unjust debt through education, research and campaigning: https://debtjustice.org.uk/
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