We aim to make our website as accessible as possible. However if you use a screen reader and require debt advice you may find it easier to phone us instead. Our phone number is 0 8 0 0 1 3 8 1 1 1 1. Freephone (including all mobiles).

Looking through the keyhole

StepChange debt advice clients’ experiences of the council tax debt collection journey

Download the report

'Looking through the keyhole' is our latest policy report, exploring our debt advice clients’ experiences of the council tax debt collection journey.

In Summer 2024, we surveyed our debt advice clients to understand their experiences of council tax debt collection and enforcement. Our new report offers a deep dive into affordability challenges, interactions with local authorities and enforcement agents.

About the report

One in three StepChange clients responsible for paying council tax are in arrears – over 40,000 people, among many more behind on council tax nationally. Those behind on this bill face complex circumstances and enduring cost of living challenges – yet instead of offering compassion and help to people who need it, the current system is making things worse.

The existing rules mean that, after missing one council tax payment, someone can suddenly find themselves with the rest of the year’s bill to pay, threats of imprisonment hanging over their head and the very tangible possibility that bailiffs will visit their home – with doorstep conduct that can fall worryingly short.

Our new research confirms that reforms to council tax debt collection practices are desperately needed.

Key findings:

Council tax payments are an increasingly unaffordable burden for many of our clients

Council tax costs have grown substantially in recent years, as have levels of arrears among StepChange clients and the public more widely. The average amount of council tax arrears per StepChange client rose by over 50% from £1,146 in 2019 to £1,726 in 2023. Tellingly:

  • Three quarters (73%) of clients we surveyed were also behind on their energy bills when they fell behind on council tax, while over half (55%) were behind on housing costs
  • Around two thirds (64%) of clients missed utility payments to try and keep up with council tax bills in the six months before they fell behind, while three in five (60%) went without a healthy diet. Half (52%) had rationed the amount of utilities they used
  • Clients are most likely to cite a cost of living increase (68%) as a reason for falling behind on council tax, followed by mental health issues such as stress, anxiety or depression (61%). Nine in ten (89%) selected two or more reasons for falling behind

Poor council tax debt collection practices aggravate financial difficulties and lead to worrying health outcomes

This is driven by rapid escalation, with insufficient steps taken to identify and engage those in financial difficulty, a perceived lack of empathy and understanding, and challenges agreeing to sustainable repayment agreements.

  • Only one in twenty (5%) clients said that their council took their personal situation into account, including vulnerabilities, before taking further action on their council tax arrears
  • While three in five (61%) clients agreed to a repayment plan with their council after falling behind, most (69%) of this group said this was at a rate they didn’t feel comfortable with. A third (34%) of clients who agreed to a repayment plan with their council said they were not able to keep up with it, while approaching half (47%) found it difficult to do so
  • Over four in five (85%) clients said the communications they received from their council about their arrears made them feel scared, anxious or depressed

Enforcement action is threatened and deployed too often where clients are in vulnerable situations and unable to repay council tax debt

Clients report that bailiffs sometimes break the rules, and fees charged considerably worsen their situations – with damaging consequences for some.

  • Around half (53%) of clients who experienced bailiff action said the enforcement agents put pressure on them to make unaffordable repayments during visits to their home, while a third (34%) said bailiffs displayed intimidating or aggressive behaviour
  • Three in five (60%) clients went without a healthy food or diet as a direct result of additional charges imposed by bailiffs, while over half (53%) rationed the amount of utilities they used
  • The vast majority of clients who experienced bailiff action said it negatively impacted both their mental (95%) and physical (91%) health and wellbeing, as well as their ability to get enough sleep (94%) and how safe they felt in their own home (91%)

What's next?

'Looking through the keyhole' contains key recommendations for central Government and local authorities, geared towards reforming the current council tax collection approach, improving outcomes for those who struggle with this bill, and helping people on the road to escaping problem debt.

The following recommendations should be adopted at speed:

  1. End the postcode lottery of Council Tax Support, ensuring that 100% reductions can be re-established for those on the lowest incomes.
  2. Tackle underclaiming of Council Tax Support by increasing awareness and uptake to make sure those who are eligible, receive it. 
  3. Change council tax regulations so that people are given more time to deal with debts and not required to pay their full annual council tax bill after missing one instalment.
  4. Develop a mandatory protocol for council tax debt collection, supported by statutory standards. This would require councils to take certain steps before seeking a liability order or taking enforcement action.
  5. Establish that bailiffs should only be used as a last resort. Councils should also completely exempt recipients of Council Tax Support from bailiff enforcement action.
  6. Give the Enforcement Conduct Board statutory underpinning, so that people facing unfair and intimidating bailiff action receive the protections they deserve. 
  7. Remove the outdated sanction of imprisonment for non-payment of council tax in England, in line with the other UK nations.