Political upheaval must not slow Council Tax reform as arrears in England top £7 billion 

We respond to Collection rates for Council Tax and non-domestic rates in England, 2025 to 2026, released today by the Ministry for Housing, Communities and Local Government (MHCLG). The figures show that Council Tax arrears in England now stand at £7.4 billion, up 11.3% from 2024/25.

Posted June 24, 2026

Edward Ware, Head of Influencing and Communications at Money Advice Trust, the charity that runs National Debtline, says: 

“Today’s figure underlines the growing pressure that Council Tax is placing on household finances. Behind these numbers are millions of people struggling to keep up with essential bills as wider cost-of-living pressures continue.  

“There is an obvious need for greater investment in Council Tax Support schemes. With councils under significant financial pressure, many feel they have had no choice but to cut back this support, despite knowing many residents will struggle to afford the bills they then face. Without action from central government, this vicious cycle and the postcode lottery of support will continue.  

“We urge MHCLG to set out a fully-funded national criteria for Council Tax Support, to ensure that the most financially vulnerable households get the support they need. This should be accompanied by sufficient, ringfenced funding. 

“It is also vital that wider progress on reform is not derailed by wider political uncertainty. The Government has already consulted on key reforms to Council Tax collection, including introducing statutory steps before enforcement action is taken. Momentum must not be lost and these practical reforms to ensure people are treated fairly and supported to get back on track should be implemented as soon as possible”. 

National Debtline research 

  • Four in five (79%) people supported reducing Council Tax bills for low-income households 
  • 68% of people thought councils should be doing more to help those struggling with Council Tax 
  • 74% said it should be easier to apply for support and over half (54%) thought people should be given more time to repay 
  • 30% of people who contact National Debtline have Council Tax debt, averaging £2,344 per person. It is the third most common debt type its advisers deal with.

Find out more about the stats on the MHCLG website here.