One in four, equivalent to twelve million people in the UK, worried about council tax bills

^{2 September 2025}

New polling conducted by YouGov for StepChange Debt Charity finds that over 12 million people, around one in four UK adults (23%), are worried about their ability to pay council tax in the next six months.

The data reveals that of those worried about their council tax, almost three in four (70%) say that this is due to a cost of living increase, and the YouGov research also shows that over 1.6 million people (3%) are behind on their council tax already, coming at a time when data from the Ministry of Housing, Communities, and Local Government show that total arrears has topped, £6.6 billion, an increase of £600 million on last year, and 50% since the pandemic.

What's more, StepChange's client statistics show that council tax is now the second common type of arrears - ahead of other household costs including housing and water - with 35% of StepChange clients in arrears. The average level of arrears is almost double the amount it was before the pandemic, up 84% since 2019, and stands at an average of £2,129 per client.

Council tax debt can prompt some of the most outdated and harmful debt collection practices. For example, a local authority can demand the full year's bill after someone misses just one payment. This is especially concerning as the research found that around one in six (15%) UK adults, equivalent to over 8 million people, would be unable to pay any of their full annual council tax bill without borrowing if required to do so in the next month. This extreme measure is out of step with the consumer credit sector and StepChange research has consistently shown how this rule plunges people further into financial difficulty.

Emily Whitford, Senior Public Policy Advocate at StepChange and author of Looking through the keyhole, research into council tax debt collection, said:

"These latest polling figures show just how deep the affordability crisis around council tax runs. With council tax arrears now taking second place amongst our clients' household debts, it's more urgent than ever that the Government acts to reform outdated collection practices which exacerbate - rather than alleviate - financial hardship.

"We want to see fewer people falling behind in the first place through an end to the postcode lottery of council tax support, coupled with better protections for those struggling to pay and a reduction in heavy-handed enforcement action. The recent announcement from Minister McFadden of a consultation on council tax debt collection reform is a welcome step forward, but for the third of StepChange clients in council tax arrears who face disproportionate collection activity, we need to see swift action."

Sophie, a StepChange client based in London facing council tax affordability pressures, said:

"As a single parent and sole carer for my daughter who has severe autism, my universal credit allowance did not meet my monthly council tax payments whilst also prioritising the rent and the utility bills. The truth is, I was unaware of the implications of council tax arrears, so when things escalated and a bailiff turned up at the door, I was incredibly scared and confused.

"Neither the bailiffs nor my local authority informed or signposted me to support or discounts and communication throughout this process has been really difficult. Earlier this year I got a letter informing me that my council tax is going up, which doesn't help when I'm still trying to pay off my existing debt. As a result, I've been forced to juggle being a full-time carer and returning to work part time to improve my situation, but dealing with setbacks makes things so much harder."

Notes to Editors:

1. Council tax arrears by year per StepChange client

Year	% of clients in CT arrears	Average Arrears	% Increase
2019	30%	£1,146	-
2020	36%	£1,292	13%
2021	37%	£1,578	22%
2022	35%	£1,659	5%
2023	33%	£1,726	4%
2024	34%	£1,972	14%
2025 YTD	35%	£2,129	7.5%

2. The anonymous case study can be contacted by reaching out to the press office.
3. Data on average council tax rates can be found from the Ministry of Housing, Communities, and Local Government here.
4. StepChange's full recommendations for council tax reform include:
• End the postcode lottery of Council Tax Support.
• Tackle underclaiming of Council Tax Support
• Change council tax rules to give people more time to deal with arrears.
• Develop a mandatory protocol for council tax debt collection, supported by statutory standards.
• Establish that bailiffs should only be used as a last resort
• Give the Enforcement Conduct Board statutory underpinning
• Abolish imprisonment for council tax non-payment in England, as has already happened in the rest of the UK.
5. Data on national council tax arrears can be found from the Ministry of Housing, Communities and Local Government here.
6. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,235 adults. Fieldwork was undertaken between 7th - 8th May 2025. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).