Millions falling behind with council tax payments

The rising cost of living has led to more households struggling to pay their council tax bills.

Research by Debt Justice shows that 4.4 million households fell behind on their council tax last year.

That’s up from 3.2 million in 2023.

Low earners among the hardest hit

Many of the households in council tax arrears were found to be on low incomes.

Nearly four in five (78%) are in the bottom 50% of earners - with a household income of less than £1,945 a month.

In addition, almost half (46%) earn less than £1,337 a month, which means they’re in the bottom 25% of earners.

Figures also showed that one in three (32%) live below the poverty line, surviving on less than £252.50 per week - up from one in five (21%) a decade ago.

Struggling households skipping meals

Financial pressures have led to many making tough decisions to make ends meet and keep up with bills.

For example, more than a quarter (28%) of people who’ve fallen behind on their council tax have skipped a meal because they didn’t have enough money to buy food.

This is ten times the rate for the rest of the population.

Cost-of-living crisis putting households under pressure

Debt Justice said the findings should come as no surprise.

The campaign group pointed out that since the pandemic, council tax has gone up by 5% a year in most areas, and that on average, it’s increased by 54% in the last 10 years.

“At the same time, the cost-of-living crisis has hit families hard, and household bills like rent, mortgages, energy and water have all risen at above inflation rates,” it commented.

What can I do if I’m struggling to pay council tax?

Council tax is typically paid in monthly instalments. 

If you miss a payment, your account falls into arrears.

Council tax is a priority bill, so you could face serious consequences if you fall behind on payments, such as legal action or a visit from bailiffs to recover the unpaid debt. 

The first thing you should do if you fall behind with council tax payments is get in touch with your local authority and explain your situation. 

They can help by setting up a repayment plan or signposting you for debt help. 

Find out more about what to do about council tax arrears here.