National Debtline responds to council tax arrears reaching £6.6 billion in England
Latest figures show £6.6 billion owed to local authorities in England. This is an increase of £618 million (10%) in the last year.
Posted June 25, 2025
Council tax arrears in England now stand at £6.6 billion, according to figures released today by the Ministry for Housing, Communities and Local Government.
This is a 10% increase on last year’s figures, indicating the impact that continuing cost-of-living pressures, alongside cuts to council tax support have had in escalating arrears levels.
National Debtline is calling on anyone worried about their council tax bills to seek advice as soon as possible.
Steve Vaid, Chief Executive at the Money Advice Trust, the charity that runs National Debtline, says: “ With the average council tax bill rising by a further 5% this year, at a time when many people are still reeling from the impact of high costs and global economic precarity, even more people are at risk of falling into financial difficulty.”
25% of people who call National Debtline for advice have council tax debt, averaging £1,958 per person, making it one of the top three most common debts its advisers hear about.
Recent Money Advice Trust research also reveals that as of March 2025, 2.2 million people in England (5%) were behind on their council tax bill, suggesting that many more people could be struggling with council tax arrears who have not yet sought help.
Current rules mean that households can become liable for their full annual council tax bill if they miss just one payment, which often results in a quick escalation to bailiff action.
Last week, the Government set out proposals to extend this period, so that people have more time to engage and seek support – something National Debtline has welcomed, after years of campaigning for this change. Earlier this month, the Ministry of Justice also announced plans to consult on giving independent body the Enforcement Conduct Board legal powers to regulate the bailiff industry, with millions of council tax debts passed to bailiffs every year.
National Debtline strongly welcomes these developments after a decade of campaigning for independent bailiff regulation and for changes to the archaic council tax collection process.
The charity says that progress in this area will help reduce financial hardship, bring down arrears and make a big difference to households struggling to keep up with their bills.
Steve continues, “Arrears levels of this magnitude underline the need for urgent action.
“Every day at National Debtline, we see how council tax continues to be one of the most common debts people face, with the amount owed on average rising 46% (£617) compared to 2020
“Councils have a vital role in helping residents with unmanageable bills and to ensure council tax – crucial to funding local services – is collected in a way that is fair and affordable.
“The Government has rightly recognised the need for change, to better support people who have fallen into difficulty, and this is something we have long campaigned for.
“However, if the Government is serious about tackling council tax debt, they will also need to invest in increased council tax support – to help stop people falling behind in the first place.”
"I would urge anyone worried about their council tax, or any other bills, to seek free, independent advice from National Debtline. Our advisers are here to help and can talk you through your options.”