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Total council tax arrears across Britain has reached a record £9.3 billion, Debt Justice reveals

THE total council tax debt across all British households has reached £9.3 billion, an analysis found today.

Campaigners with Debt Justice said the shortfall represented a new record, highlighting a deepening strain on households which culminated in the past year alone with a 12 per cent jump in council tax arrears, equivalent to £1bn. The debt has increased by 65 per cent over the last five years.

Official government data published today showed council tax arrears in England have reached £7.4bn. And the Scottish and Welsh governments put their populations’ cumulative debt at £1.6bn and £320 million respectively in recent disclosures.

Wales saw the most significant increase, by 103 per cent over the last five years up from from £157m in 2020-21.

Council taxes in England and Wales have increased at above-inflation rates over the same period, the findings revealed, with the average Band D property seeing an increase of 56 per cent and 66 per cent respectively.

This means households paid hundreds of pounds more than if bills had risen in line with inflation, as CPI inflation was 42 per cent for that period.

Debt Justice policy manager Toby Murray said the record levels of arrears mean governments can no longer “bury their heads in the sand” over the payments crisis.

“People aren’t avoiding council tax, they simply can’t afford it,” he said.

“Many are on low incomes and living in poverty. Instead of offering support, councils are sending in bailiffs or sheriff officers in their millions, punishing people for struggling with their bills.

“Recent government reforms from England and Wales are a good start, but they must go further.”

He added that governments must “immediately end the use of bailiffs or sheriff officers for council tax debt and instead work with councils to support people in debt.”

Following criticism of councils across the country which have used private bailiffs firms to collect arrears, a councillor and housing executive in a London borough recently described widespread issues in local authorities collecting debt across the capital.

Speaking at a conference in London on Tuesday, Camden council executive director for homes and communities Dan Hawthorne said councils “haven’t been taking a very person-centred approach.

“You hear stories that sometimes the bailiff is the first human being they meet in a conversation about their debt, that’s not right.”

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