New figures from the Ministry of Housing, Communities, and Local Government have shown that council tax arrears in England have risen to £4.4 billion.
The figures show that In 2020-21 local authorities collected a total of £32.2 billion in council tax. This was an increase of £0.6 billion, or 1.9%, over 2019-20. This is lower than in previous years due to a combination of more support given to taxpayers through discounts and the use of local council tax support schemes because of the Covid-19 pandemic, which has reduced the amount due to be collected, and a lower rate of collection.
By the end of March 2021, they had collected £31.7 billion of council tax that related to 2020-21 and achieved an average in-year collection rate of 95.7%, a decrease of 1.1 percentage points over 2019-20.
On 31st March 2021, the total amount of council tax still outstanding amounted to £4.4 billion. This is a cumulative figure and includes arrears that may stretch back a number of years. This is an increase of £841 million over the figure for 2019-20.
These figures highlight how the pandemic has left many households facing increased financial difficulty. While councils have a duty to pursue this unpaid tax, they also have a responsibility to ensure methods are proportionate and take into account an individual’s ability to repay. Too often, this responsibility is not met, with councils still too quick to pass council tax debts to bailiffs.
Struggling with Council Tax?
If you are struggling to repay Council Tax debt contact our expert debt advisors to discuss your options. Our team can help you put a plan in place to let your get back on top.
