More than £9bn is owed to councils across the UK in unpaid council tax, according to newly published government data, as charities warn of a growing affordability crisis and a range of available support measures that many people are not claiming.
How large is the debt?
Figures from the Ministry of Housing, Communities and Local Government show that uncollected council tax in England had risen to £7.4bn by the end of March. Separate data published in Scotland and Wales pushes the overall UK total beyond £9bn, according to the BBC.
During the financial year to the end of March, £2.2bn of council tax levied in England went unpaid. Despite this, £43bn of what was levied during the year was collected, representing a collection rate of 95.6%.
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Charities warn of a "system that perpetuates debt"
Debt charities say the figures reflect a broader struggle among households to meet essential bills. Vikki Brownridge, chief executive of StepChange, said the numbers came as no surprise to the charity's advisers. "With one in three of those coming to StepChange behind on this bill, these latest figures are no surprise to us and point to a system that perpetuates debt with little to no constructive route out," she said, as reported by the BBC.
National Debtline has also called for local authorities to receive more funding to provide support, noting that provision varies significantly between areas. The charity has long campaigned against the use of bailiffs and threats of court action and prison for non-payment, arguing that such measures discourage people from seeking help.
Support measures that often go unclaimed
Charities are urging anyone struggling with council tax to check whether they qualify for existing discounts or support. According to the BBC's reporting, available measures, which vary by council area, include a 25% discount for adults living alone, a full exemption for full-time students, the ability for people with disabilities to apply to move to a lower council tax band, and Council Tax Support for those on low incomes. Each of these requires an application to be made. In Northern Ireland, the system differs and housing benefit may be claimed instead.
Government proposes changes to collection system
In April, the government published plans to reform how council tax is collected in England. Under the proposals, payments would be spread over 12 months rather than the current 10 instalments. People struggling to pay would be given 63 days, roughly two months, to settle their bill, and councils would be required to work with them on a sustainable repayment plan.
The BBC notes that many councils have previously demanded full payment for the year after a single missed monthly instalment. The proposed changes could be introduced next year, though no confirmed date has been set.
Although non-payment of council tax can in extreme cases lead to a prison sentence, the BBC reports that various discounts and support options remain in place, and are frequently unclaimed.
Free, impartial debt advice is available from StepChange, MoneyHelper and Citizens Advice.