12.5 million UK adults worried about ability to pay council tax as coalition calls to end imprisonment for non-payment

^{23 January 2025}

A coalition of organisations including StepChange Debt Charity, Christians Against Poverty, Money and Mental Health Policy Institute, Money Advice Trust and six others has written to the Government reiterating a call to end imprisonment for non-payment of council tax. The coalition claims the rule is “outdated” and “disproportionate,” as it continues to campaign for reform of council tax regulations.

This call comes as StepChange research finds that nearly one in four UK adults (23%) – equivalent to 12.5 million people – are worried about their ability to pay council tax over the next six months. This is second only to energy, which stands at almost one in three (31%), and outstrips rent, mortgage or water (all 19%), revealing the pressures the bill and existing regulations place on households.

The sector-wide intervention comes as evidence reveals that council tax arrears have reached alarming levels, with women, single parents and those living with mental health problems disproportionately impacted by punitive collection action:

• Total arrears for council tax stand at £6bn as of March 2024, a 67% increase since early 2020.
• A third (34%) of new StepChange clients responsible for paying council tax were behind on this bill in December 2024, at an average amount of £1,937, an increase of almost 70% since before the pandemic, up from £1,146.

Feeding into the Independent Sentencing Review chaired by former Justice Secretary David Gauke, the letter outlines how the threat of imprisonment is frequently overemphasised in communications and used as a scare tactic to pressure people into unaffordable repayment arrangements, often aimed at the most vulnerable groups. The existing approach makes debt problems worse and pushes people into hardship, harming peoples’ health and wellbeing.

As it stands, England remains the only part of the UK to retain the imprisonment sanction, out of step with the rest of the country. What’s more, the average cost per prison place far outstrips the amount it would take to recoup or write off the average amount of council tax arrears per StepChange client.

Richard Lane, Chief Client Officer at StepChange, said:

"Current regulations around imprisonment are outdated at best and draconian at worst. That someone who has fallen behind on their council tax bills – so often a symptom of deep-rooted financial difficulty – can face the prospect of prison is unfathomable in the 21st century. Threats of imprisonment would not fly in the consumer credit sector, and it should not in local government debt collection.

"If the Government wants to introduce an easy, low-cost, and equitable policy to protect those in financial difficulty, then removing this rule is a good way to support the most vulnerable and signal a priority of fairness."

Juliette Flach, Policy and Public Affairs Manager at Christians Against Poverty, said:

"With nearly half of our clients struggling to afford basic necessities, low wages and benefit levels are clearly impacting millions. Threatening imprisonment for council tax debt is both unjust and ineffective in this context. We need a more compassionate system that supports, not punishes, those trapped in the vicious cycle of debt and poverty."

Helen Undy, Chief Executive of the Money and Mental Health Policy Institute, said:

"The government should put an end to this cruel and archaic process, as it destroys lives and does little to help councils recoup money. Even the threat of prison can have a devastating psychological impact for people who simply can’t afford their council tax bill, and are already under huge financial and mental strain. We urge the government to act now before more lives are needlessly ruined."

Grace Brownfield, Head of Influencing and Communications at Money Advice Trust – the charity that runs National Debtline, said:

"It can never be right that people facing financial difficulty are threatened with imprisonment. The focus instead should be on providing meaningful support to people struggling to pay their council tax bills and helping them get out of debt safely and affordably."

Notes to Editors

1. The full letter and list of signatories can be found on StepChange’s website here.
2. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,306 adults. Fieldwork was undertaken between 19th - 20th January 2025. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
3. Population estimates for UK adults are conducted by StepChange, based on ONS population data.
4. StepChange’s research into council tax debt collection can be found here.
5. Statistics from the Ministry of Housing, Communities, and Local Government, on council tax can be found here.
6. Data from the HM Prison & Probation Service shows that the average annual cost per prison place was £51,724 in 2022-23. Meanwhile, the average amount of council tax arrears faced by StepChange clients behind on this bill was £1,937 in 2024.