England council tax arrears reach record £7.4 billion

Unpaid council tax in England has reached a record £7.4 billion, following a £782 million increase during the 2025/26 period. Analysis from the Centre for Social Justice (CSJ) indicates that arrears were rising at a rate of approximately £1,500 every minute last year.

The surge comes as households face rising costs, including a 4.9 per cent increase in average Band D council tax, which rose by £111 to £2,392 this April. Some local authorities implemented even higher hikes, such as Worcestershire County Council at 8.98 per cent and Trafford at 7.49 per cent.

The CSJ report, produced in partnership with Lowell and Money Wellness, highlights that over half of individuals requiring debt advice do not know who to trust for financial assistance. The think tank is urging the government to implement “everyday fixes,” such as clearer digital communications and better signposting to free debt advice, to prevent families from spiralling into deeper debt ahead of the upcoming Budget.