Cost of living correspondent<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n Struggling households owe billions of pounds in unpaid council tax, but bills are expected to keep rising in the years ahead.<\/p>\n Newly-published figures show \u00a36.6bn is owed to local authorities in England, with an extra \u00a3642m having been added to those arrears in the year to April.<\/p>\n Separate data from Scotland and Wales means the total cumulative amount owed in the three countries has hit more than \u00a38bn.<\/p>\n Campaigners have called for a more sympathetic approach to council tax debt collection, rather than the use of bailiffs.<\/p>\n<\/div>\n While the government is proposing a change in the rules over the way unpaid bills are chased, the Treasury is also assuming council tax will rise<\/a> by 5% a year in the future.<\/p>\n Asked whether the Treasury was “baking in” a 5% increase, Chief Secretary Darren Jones told a committee on Wednesday examining the recent Spending Review: “We are doing that, yes.”<\/p>\n Councils can raise council tax by up to this amount, although they can go above this cap if they hold a local referendum or get approval from central government.<\/p>\n<\/div>\n The latest figures for England<\/a> show that, in the 12 months to April, local authorities collected a total of \u00a341.2bn in council tax, irrespective of the year to which it related. <\/p>\n This was an increase of \u00a32.8bn, or 7.2%, compared with the previous year.<\/p>\n However, the amount cumulatively owed has risen by 11% over the same period.<\/p>\n In Scotland, \u00a31.5bn is owed<\/a>, and there are arrears of \u00a3160m in Wales<\/a>.<\/p>\n The collective, cumulative total is more than \u00a38bn, and twice the amount of unpaid energy bills in England, Wales and Scotland.<\/p>\n Charities have long argued that the method of council tax collection in England punishes those who are genuinely struggling to pay.<\/p>\n Non-payment of a monthly bill after three weeks, or three late payments, in England means the council can send a demand for the remainder of the year’s council tax to be paid in full.<\/p>\n They can later send in bailiffs to recover the debt.<\/p>\n “People in council tax arrears are overwhelmingly on low incomes, and many are living in poverty,” said Toby Murray, from charity Debt Justice. <\/p>\n “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.”<\/p>\n<\/div>\n The government recently unveiled plans to cap the fees added to debt when going to court and to loosen the rules on when a household may become liable for a full-year’s bill.<\/p>\n Ministers are already reviewing debt enforcement practices, including the conduct of bailiffs.<\/p>\n They are also proposing making 12 monthly payments of council tax the default option, rather than 10.<\/p>\n The Local Government Association, which represents councils, said councils had a responsibility to collect taxes to fund local services, but they “realise that times are still tough for many low-income households”.<\/p>\n It said the government needed to make sure councils had enough funding to be able to give council tax support to people who need it.<\/p>\n “Otherwise, it is almost inevitable that bills will continue to be forced up for those who can least afford to pay,” a spokesman said.<\/p>\n<\/div>\n Charities are urging people not to ignore council tax bills and demands. Tips from Citizens Advice for those struggling include:<\/p>\n![\"Getty](\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/db10\/live\/f0b9f640-51a8-11f0-9678-176294b80109.jpg.webp\")
Getty Images<\/span><\/div>\n<\/div>\n<\/figure>\nFalling behind<\/h2>\n<\/p>\n
What to do if you can’t pay<\/h2>\n<\/p>\n
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