Figures from the Ministry of Housing, Communities, and Local Government, show council tax arrears have increased by over £600m, now standing at a total of £6.6 billion.

Now a charity, StepChange, claims these figures point to a broken system. It says its own polling shows that of those earning under £35,000, close to the median UK salary, 41% are worried about meeting tax payments. Amongst the charity’s own clients, just over one in three are in council arrears, of an average £2,094.

A spokesperson says: .“As it stands, existing practices around tax debt collection only exacerbate financial difficulty and the reality is that the current system lacks compassion and clarity. 

“Our previous research has consistently shown these debt collection practices are worsening people’s mental health and wellbeing – over four in five StepChange clients with council tax arrears said the communications they received from their council about their arrears made them feel scared, anxious or depressed.

“The government’s recent publication of a consultation on tax debt collection reforms marks an opportunity for real change. We are calling on central Government to reform existing rules around tax debt escalation, including the punitive regulation which means one single missed tax payment can lead to your council demanding a full year’s payment.”

Blog Post from Letting Agent Today

See details of our CHG Guaranteed Rent Scheme here