Council tax arrears race up £1,500 a minute under Labour bills

Council tax arrears have been climbing at £1,500 every minute, with a fresh analysis showing the unpaid total jumped by £782million in 2025-26 to hit £7.4billion as households sink deeper into debt.

The Centre for Social Justice figures land as families face another round of higher bills. The average Band D council tax in England rose by £111 to £2,392 in April, a 4.9 per cent jump, while Worcestershire County Council pushed through an 8.98 per cent rise.

Shadow housing minister Gareth Bacon responded to the findings: “Council tax is spiralling out of control under Labour, with families facing ever-rising bills. It is little wonder that more and more people are struggling to pay. Hardworking people are dealing with rising prices, rising energy bills and rising costs at the pump, yet all Labour can offer is tax, tax, tax. They are hiking up ordinary people’s council tax and adding extra costs on top through their new family homes tax.”

Ben Gregg, head of welfare at the CSJ, said council tax arrears are dragging struggling households deeper into problem debt, and that the way this debt is collected sits firmly within the Government’s control. He pointed to missed chances to stop a spiral when people do not understand what they have been sent, put off responding, or do not know who to trust, calling for clearer communications, earlier support and a trusted route to free advice.

Britain cannot keep loading the same families with higher local bills while savings run dry and then act surprised when the arrears mountain grows. Councils and ministers have the levers on collection and support; using them late, or not at all, leaves taxpayers carrying both the debt and the service strain. A country that wants to stand on its own two feet needs bills people can actually meet, not another turn of the screw from a bigger-state habit.

The report was produced with credit management firm Lowell and Money Wellness. Lowell found nearly half of households had no emergency savings, leaving little buffer against further rises in essential bills. Lowell chief executive John Pears warned that council tax debt is one of the biggest concerns, with bills rising and more people unable to afford them, left in serious debt under a system that does not work, as customers describe legal threats, aggressive enforcement and nowhere clear to turn.

Councils and ministers under pressure

The Local Government Association said many councils have had to raise bills to protect services while knowing the pressure on households, and stressed it is vital that anyone unable to pay contacts the council early for help and an affordable plan. A Ministry of Housing, Communities and Local Government spokesperson pointed to moves toward 12 monthly payments by default, a £100 cap on recovery costs, and rules requiring councils to signpost trusted advice, plus a reminder and final notice before instalment rights are lost and a longer wait before the full annual bill can be demanded.

The CSJ also warned that more than half of people needing debt advice say they do not know who to trust for financial help. That distrust matters when arrears are already at £7.4billion and still rising by the minute. The Daily Express set out the scale of the climb and the political charge that Labour is loading costs onto family homes while millions lack the savings to absorb another essential-bill shock.

What happens next turns on whether councils change how they write, chase and support, and whether the Government’s promised caps and signposting actually slow the clock on that £1,500-a-minute build-up. For now the numbers are plain: higher Band D bills, a near-£800million annual jump in arrears, and households with empty rainy-day pots facing the next demand.

Original source: Daily Express

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