HOUSEHOLDS have been issued a warning over a record £8.3billion in unpaid council tax.
The latest Government data reveals millions across England, Scotland and Wales have fallen behind payments for the essential bill.
New analysis from charity Debt Justice shows more than £6.2billion was owed by households in England at the end of March this year.
Meanwhile, Scottish households owed £1.5billion and those in Wales £160million.
The charity’s analysis reveals council tax arrears across Britain has increased by 79% in the last five years, from £4.63billion in March 2020 to £8.2billion this March.
Wales has seen the biggest hike, with a rise of 170% since 2020, nearly tripling from £59million.
Arrears in England and Scotland have increased by 85% and 51% respectively over the last five years.
Meanwhile, other recent research by Debt Justice found 4.4million people have fallen behind on their council tax, up from 3.2million a year ago.
Council tax bills are expected to increase at their fastest rate in 20 years following Rachel Reeves’ spending review.
The average Band D council tax set by local authorities in England for this financial year is £2,280 – a 5% rise would see this go up to £2,394.
Toby Murray, policy and campaigns manager at Debt Justice, said: “The vast majority of people aren’t avoiding council tax, they simply can’t afford it.
“People in council tax arrears are overwhelmingly on low incomes, and many are living in poverty.
“Rather than help, councils are sending in the bailiffs – punishing people for struggling with their bills.
“Councils should end the use of bailiffs for council tax debt collection and instead introduce urgent reforms, including a duty of care to protect people most at risk.”
It comes as the Government plans a huge shake-up to the way council tax is collected following calls from campaign groups.
Ministers are proposing households pay council tax bills over 12 months instead of 10 to help them manage their finances better as part of a consultation.
The Government is also mooting changing the way council tax arrears are recovered.
Under the plans, councils will have to wait longer before demanding a bill is paid in full and the costs charged to households through liability orders will be capped.
A liability order is a demand for payment of council tax issued by a Magistrates’ Court.
Any changes included in the consultation are being discussed until September 12 and would come into effect this autumn.
What happens if you don’t pay council tax and what can you do?
The repercussions for not paying council tax can be severe, hence why the Government is consulting on changing the rules.
Your council will send you a reminder notice giving you seven days to pay if you miss a payment.
If you don’t pay within seven days, you’ll have to pay the whole year’s council tax.
You’ll then be sent a second reminder notice if you miss another council tax payment.
You’ll only get a maximum of two reminder notices in a financial year – this runs from April 1 to March 31 of the next year.
Your council will ultimately send you a final notice saying you must pay the whole year’s council tax if you miss a payment for the third time.
If you don’t pay this within seven days, you may end up being summoned to court.
Your council can even send bailiffs to seize your property if there’s no other way to recover your debt.
The bailiffs’ costs can be added to the total amount you owe the council.
If you are struggling to get the funds together to pay off council tax arrears, you can pause any debt for 60 days under the Debt Respite Scheme, also known as Breathing Space.
During this time, you receive professional advice to help you establish a long-term plan to clear any debt.
You are also offered protection from bailiffs. You can find out more about who’s eligible and how to apply.
What council tax support is available?
THERE are several ways you can get discounts and reductions on your council tax bill.
In some cases, you can even get the bill completely wiped with a council tax reduction.
Factors such as your household income, whether you have children, and if you receive any benefits, will influence what you get.
To apply, visit https://www.gov.uk/apply-council-tax-reduction.
You’ll need your National Insurance number, bank statements, a recent payslip or letter from the Jobcentre, and a passport or driving licence when filling out the details.
Below, we reveal all the ways you can get discounts or a reduction on your bill:
Single person discount
If you live on your own, you can get 25% off your council tax bill.
This also applies if there is one adult and one student living together in a property, or if there is one adult and one person classed as severely mentally impaired in the home.
If you live with someone who doesn’t have to pay council tax, such as a carer or someone who is severely mentally impaired, you could get a larger reduction too, of up to 50%.
And, if you live in an all-student household, you could get a 100% discount.
Retirees
Pensioners may also find themselves eligible for a council tax reduction.
If you receive the Guarantee Credit element of Pension Credit, you could get a 100% discount.
If not, you could still get help if you have a low income and less than £16,000 in savings.
And a pensioner who lives alone will be entitled to a 25% discount too.
Low-income households
If you are on a low income or receiving benefits, you could be eligible for a reduction on your council tax.
Whether you are eligible will vary depending on where you live.
You could also get a deferral if you’re struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.
But one thing to remember is if you are struggling you should contact your council as early as you can.
