For more information and interviews contact Toby Murray on +44 7716 200346
New analysis from Debt Justice reveals that total council tax arrears across Britain have reached a record of nearly £8.3bn, underlining the deepening financial strain on households amid the ongoing cost of living crisis.[1]
Figures released today by the Ministry of Housing, Communities and Local Government show that council tax arrears in England have reached more than £6.6bn, while recent figures from Scotland and Wales put arrears at £1.5bn and £0.16bn respectively.
The data shows that total council tax arrears have increased by 79% over the last five years. In the past financial year alone, arrears rose across the country by £802m – an 11% jump from the previous year.
Wales has seen the biggest increase in council tax arrears with an increase of 170% over the last five years, nearly tripling from £59m in 2019-20. England and Scotland have increased by 85% and 51% respectively over the last five years.
While collection rates remain high, they have fallen in England from a peak of 97.4% in 2012–13 to 95.9% last year.[2]
Recent research from Debt Justice found 4.4 million people have fallen behind on their council tax, up from 3.2 million just a year before. Their analysis found a third of people in arrears are living below the poverty line, and 79% are households in the bottom half of earners.[3]
In documents for the recent spending review, the Treasury indicated that council tax is expected to rise by 5% a year to pay for local services.[4]
Toby Murray, Policy and Campaigns Manager at Debt Justice, said:
“The vast majority of 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. Councils should end the use of bailiffs for council tax debt collection and instead introduce urgent reforms, including a duty of care to protect people most at risk.”
ENDS
Notes
| Year | England Council Tax Arrears (£000s) | Scotland Council Tax Arrears (£000s) | Wales Council Tax Arrears (£000s) | Total |
| 2019-20 | 3,577,000 | 994,882 | 59,344 | 4,631,226 |
| 2020-21 | 4,418,000 | 1,080,340 | 79,929 | 5,578,269 |
| 2021-22 | 4,966,000 | 1,164,435 | 102,789 | 6,233,224 |
| 2022-23 | 5,479,000 | 1,247,872 | 121,129 | 6,848,001 |
| 2023-24 | 5,982,000 | 1,364,684 | 138,843 | 7,485,527 |
| 2024-25 | 6,625,000 | 1,503,069 | 160,229 | 8,288,298 |
| Increase since last year | 11% | 10% | 15% | 11% |
| Increase in 5 years | 85% | 51% | 170% | 79% |
| Source | https://www.gov.uk/government/statistics/collection-rates-for-council-tax-and-non-domestic-rates-in-england-2023-to-2024 | Debt Justice analysis of https://www.gov.scot/publications/council-tax-collection-statistics-2024-25/ | https://statswales.gov.wales/Catalogue/Local-Government/Finance/Council-Tax/Collection/arrearsofcounciltax-by-billingauthority | Debt Justice Analysis |
[1] Calculation includes just England, Scotland and Wales. Northern Ireland does not have a council tax system, instead they pay domestic rates.
2025 Numbers: https://www.gov.uk/government/statistics/collection-rates-for-council-tax-and-non-domestic-rates-in-england-2024-to-2025
[3] https://debtjustice.org.uk/wp-content/uploads/2025/05/Ban-The-Bailiffs-Briefing-Final-web.pdf
[4] https://www.bbc.co.uk/news/articles/ce3v9q5qn3lo
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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