New figures have shown that the number of people falling behind on council tax payments has hit 4.4 million
The staggering number of households falling behind on council tax payments has hit a new high of 4.4 million, levels unseen since the aftermath of the 2008 financial meltdown. Recent statistics reveal a 40% surge in the number of people in arrears over just one year, soaring from 3.2 million in 2023, per Debt Justice, an organisation championing fairer approaches to debt.
Councils now grapple with an astonishing £6 billion of outstanding council tax, an increase from the preceding year’s £5.5bn, amid a debilitating £2.3bn funding gap. In the face of these dire figures, campaigners are urging local councils to radically alter their debt recovery tactics, cautioning that aggressive rate increases and stern enforcement could worsen an already dire situation.
A beacon of hope appears as consumer advocate Martin Lewis spearheads a campaign leading the Government to reconsider the role of bailiffs in pursuing unpaid council tax, reports the Express.
A Government spokesperson said: “Councils have a duty to behave sympathetically and proportionately towards people in hardship when collecting tax and offer affordable payment plans. The Government will also consult on improving the council tax collection system.”
Addressing the mounting pressure on taxpayers, TaxPayers’ Alliance chief executive John O’Connell warns: “With a record 4.4m people now in council tax debt, town hall bosses should be focusing on helping struggling households, not hammering second homeowners with punitive premiums. Hiking taxes on one group won’t solve the growing crisis facing millions of others.”
Debt Justice’s latest research reveals that the majority of people slipping into arrears hail from the most financially vulnerable households. The Local Government Association (LGA), representing councils across the nation, maintains that local authorities are doing everything in their power to support residents facing financial difficulties.
Councillor Adam Hug, the LGA’s housing spokesperson, said: “All councils make every effort to collect that which is owing to them and 96 per cent of council tax is collected in the year in which it is due. When there are instances of unpaid council tax, it is often due to complex circumstances or people already facing hardship, and local authorities seek to work with people to work out a payment plan and avoid them lapsing into debt.”
These findings cast doubt on the suitability of the current council tax system, established in the early ’90s, amidst the ongoing cost-of-living crisis.