Business · Economy · 2 hrs ago
UK council tax arrears reach a record £7.4 billion
Unpaid council tax arrears in the UK reached a record £7.4 billion, according to figures from the Centre for Social Justice.
The total rose by £782 million in the past year.
Households face higher council tax bills, with band D homes seeing an average increase of £111 in April, while some local authorities imposed larger rises.
Gas and electricity bills have also gone up, adding pressure as household costs rise.
The growing arrears could increase pressure on Chancellor John Healey to help prevent families falling further into debt.
Healey is due to present his first budget on October 28, but the figures do not say what measures it will include to address council tax arrears.
UK council tax arrears have reached a record £7.4 billion, according to figures from the Centre for Social Justice.
The arrears rose by £782 million in the last year.
The report comes as households face council tax increases of up to 8.98 per cent and higher energy bills.
A band D home’s council tax rose by £111 to £2,392 in April.
The article says energy bills could rise again by January 2027.
- Who
- UK households owing council tax, according to figures from the Centre for Social Justice.
- What
- Council tax arrears reached a record £7.4 billion, up £782 million in the last year.
- When
- The figures were reported on 25 October 2026.
- Where
- The United Kingdom.
- Why
- The article links the rise to families struggling with the cost of living.
This story does not have two clearly opposing sides.
Council tax for band D homes rose by £111 to £2,392.
Household gas and electricity bills in the UK rose by four per cent, adding £60 in costs.
Energy bills are predicted to rise again by 16 per cent, adding £276 in household costs.
- Total arrears
- £7.4 billion
- Annual increase
- £782 million
- Band D council tax
- Rose by £111 to £2,392 in April
- Trafford increase
- 7.49 per cent
- Worcestershire County Council increase
- 8.98 per cent
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