Europe

Council tax debt rises to £9bn but here's how you can get help

BBC Business
Council tax debt rises to £9bn but here's how you can get help

Image source, Getty ImagesByKevin PeacheyCost of living correspondentPublished1 hour agoMore than £9bn is owed to councils in unpaid council tax as people continue to struggle with their finances - but some help is going unclaimed.

Newly-published data shows that uncollected council tax had risen to £7.4bn in England by the end of March. Data published separately in Scotland and Wales further pushes up the total.

Charities say the latest numbers point to a council tax affordability crisis, with a wider group of people struggling to cover essential bills.

Although non-payment of council tax can lead to a prison sentence in extreme cases, there are various discounts and support measures in place of which people are often unaware.

The latest government data shows that £2.2bn of council tax levied in England during the financial year to the end of March went unpaid.

However, £43bn of what was levied during the year was collected, marking a collection rate of 95.6%, according to the Ministry of Housing, Communities and Local Government, external.

Vikki Brownridge, chief executive of debt charity StepChange, said: "Our advisors know all too well just how deep the council tax affordability crisis runs.

"With one in three of those coming to StepChange behind on this bill, these latest figures are no surprise to us and point to a system that perpetuates debt with little to no constructive route out."

Charities are urging anyone struggling to check whether they are eligible for council tax discounts and support.

Help to pay for those on low incomes through Council Tax Support, external, but this too crucially requires making an application. The system is different in Northern Ireland where you may claim housing benefit

Charities, such as the National Debtline, say local authorities need more funding to provide support which varies significantly.

They have also long campaigned for councils to stop the use of bailiffs and threats of court action and prison, arguing that it stops people seeking help for non-payment.

Original Headline

Council tax debt rises to £9bn but here's how you can get help