Rise in council tax arrears among people seeking debt help in Scotland
30 July 2024
StepChange Debt Charity Scotland’s latest quarterly client data, published today, reveals the ongoing pressure that council tax is having on households, as average council tax arrears per client in Scotland has risen by 11% year on year.
The average council tax arrears amount among Scottish clients stands at £2,075 during the second quarter of 2024, up from £1,871 in Q2 of 2023 – an increase of £204.
The proportion of clients with council tax arrears has also risen – up to 34% in April to July 2024, from 31% during the same period of the previous year.
The new figures also show an increasing number of people on benefits seeking help with debt problems. Two in five (40%) Scottish clients are in receipt of Universal Credit, which is up by six percentage points compared to April to July of 2023 (34%).
StepChange Scotland is concerned that arrears across household bills are still rising, despite inflation falling in recent months. Lower income households continue to feel cost of living pressures more acutely, as higher bills take up a larger proportion of their income, and make it more difficult to repay debt.
The charity would like to see the Scottish Government and the new Government in Westminster commit to building up financial resilience among those on lower incomes and making essentials bills more affordable. They say it’s vital that households aren’t pushed into debt through covering essential living costs.
StepChange Scotland has long been calling on the Scottish Government to implement effective reforms to council tax collection, which would lessen the hardship that this bill can cause especially to the most financially vulnerable.
Sharon Bell, Head of StepChange Scotland, said:
"“It’s been an eventful summer so far, with a great deal of change in the political landscape. While energy bills are lower in summer and inflation has fallen in recent months, we mustn’t assume that financial difficulties for households have gone away.
“Our clients, particularly those on the lowest incomes continue to struggle to cover their bills each month, with the average amount of debt across essential bills like council tax and energy still rising.
“We know that council tax in particular is a bill that our clients have struggled with for a number of years, and council tax collection practices are a particular issue – often plunging people into more hardship, rather than helping them to repay.
“Reforming council tax collection needs a joined-up approach from the Scottish Government, sheriff officers and advice agencies. A council tax charter should be developed to codify fair collection practices, signposting people struggling to advice and support, while minimising harm to those who have fallen into financial difficulty.”
Notes to Editors
- StepChange Scotland quarterly client data for Q2’24 is available on request.