Council tax arrears surge to £1,500 per minute as household debt climbs
New analysis shows council tax arrears rose by £782 million in 2025-26, reaching £7.4 billion, while average Band D tax in England jumped 4.9% in April.
A recent report by the Centre for Social Justice found that council tax arrears grew by £782 million during 2025-26, pushing the total debt to £7.4 billion. The analysis coincides with a 4.9% rise in the average Band D council tax in England, now £2,392, and an 8.98% increase in Worcestershire County Council. Over half of households needing debt advice reported uncertainty about where to obtain reliable assistance.
The think-tank urged councils to intervene early, improve communication and provide trusted free-advice routes. The Local Government Association emphasized the importance of contacting councils when payments become unaffordable. The report, produced with credit-management firm Lowell and debt-advice provider Money Wellness, also highlighted that nearly half of households lack emergency savings.
Why it matters
Rising council tax and mounting arrears threaten household finances and could increase reliance on public support.
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