Record council tax debt yet more evidence of concerning trend in household debt pressures

^{24 June 2026}

New data released today by the Ministry of Housing, Communities, and Local Government reveal that outstanding council tax debt has reached a new high of £7.4 billion across England. This marks an increase of 11.3% year-on-year when compared with the figure at the end of 2024-2025, which stood at £6.6 billion.

Vikki Brownridge, Chief Executive at StepChange, said:

“At StepChange 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. We have also seen over the last few years a wider, concerning trend of people struggling to afford essential bills and facing problem debt as a result."

“Council tax debt reform is an urgent priority, and existing collection rules must change, as was recently signalled by the Government. We also need to see a firm commitment to a pre-action protocol and increased take up of council tax support, which is a benefit that goes widely underclaimed. Without these interventions, we will continue to see this debt figure rise each year and more people forced into difficulty.”

Notes to Editors

• Statistics on the total level of council tax debt for 2025-2026 can be found here, and for 2024-2025 can be found here
• The Government’s response to its consultation on modernising and improving the administration of council tax can be found here
• April’s polling figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,104 adults. Fieldwork was undertaken between 6th - 7th April 2026. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+). Analysis of general population estimates have been carried out by StepChange.
• January’s polling figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,179 adults. Fieldwork was undertaken between 19th - 20th January 2026. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
• Client data is taken from StepChange’s 2025 Statistics Yearbook